Brazil Inflation Rate At Near 4-1/2-Year Low Of 5.35%


The inflation rate in Brazil eased for the fifth month to 5.35 percent in January of 2017, the lowest since September of 2012 and below market expectations of 5.41 percent. Inflation slowed faster than expected in the past four months due to weaker demand and a stronger real and after reaching double digits last year. The central bank expects inflation at around 4 percent in 2017.

Year-on-year, prices rose less for: food and beverages (6.57 percent from 8.62 percent in December); housing and utilities (2.2 percent from 2.85 percent); and transport (3.19 percent from 4.22 percent). Inflation also eased for health (10.76 percent from 11.04 percent); clothing (3.42 percent from 3.55 percent); personal expenses (7.21 percent from 8 percent).

On a monthly basis, consumer prices increased 0.38 percent, slightly higher than 0.3 percent in December. The biggest upward impact came from cost of city buses (2.84 percent), food (0.35 percent) and housing (0.17 percent). Cost of water and sewerage increased 0.61 percent, offsetting a 0.6 percent decline in prices of electricity.

Brazil Inflation Rate At Near 4-1/2-Year Low Of 5.35%


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
2/8/2017 11:45:02 AM