Brazil Annual Inflation Up to 6.15% in January


In the 12 months through January, inflation rose to 6.15 percent, the highest value in a year. Food and personal expenses (in particular cigarettes), recorded the largest increases, 1.9 percent and 1.55 percent respectively.

The government targets inflation at 4.5 percent, with a tolerance margin of plus or minus 2 percentage points.

On the month over month basis, The IPCA increased 0.86 percent and stood above the 0.79 percent rate registered in December 2012.  It is the highest monthly IPCA since April 2005 and the biggest recorded in January since 2003.
 
A rising inflation along with strong Real, which reached a 9-month high against the dollar in February, puts pressure on the interest rates rise which in turn may threaten Brazilian government plans to reignite a near-stagnant economy

 


Duarte Ricardo | duarte.ricardo@tradingeconomics.com
2/8/2013 11:27:55 AM