Brazil Inflation Rate Below Expectations


Consumer prices in Brazil increased 2.86 percent year-on-year in January of 2018, easing from a 2.95 percent rise in December and below market expectations of 2.98 percent.

Year-on-year, prices rose less mainly for housing (5.18 percent compared to 6.26 percent in December) while food cost continued to fall (-1.49 percent compared to -1.87 percent). On the other hand, transport cost accelerated (4.4 percent compared to 4.1 percent). 

On a monthly basis, consumer prices rose 0.29 percent, the least for a January month since the series began in 1980 and the below 0.44 percent in December and forecasts of 0.41 percent. Main downward pressure came from cost of housing (prices fell 0.85 percent), namely electricity (-4.73 percent) amid lower fees and clothing (-0.98 percent). On the other hand, upward pressure came from food and beverages (0.74 percent compared to 0.54 percent in December), namely tomatoes (45.71 percent), carrots (18.54 percent) and potatoes (10.85 percent). Transport made the second highest upward contribution (prices up 1.1 percent compared to 1.23 percent in December), namely gasoline (2.44 percent), ethanol (3.55 percent) and public bus. 

Brazil Inflation Rate Below Expectations


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
2/8/2018 12:18:38 PM