Brazil Annual Inflation Rate at Over 2-Year High in March


The annual inflation rate in Brazil increased to 4.58 percent in March 2019 from 3.89 percent in the previous month and above market expectations of 3.85 percent. It was the highest inflation rate since February 2017, mainly driven by cost of food and non-alcoholic beverages and transport.

Year-on-year, prices rose further for food and non-alcoholic beverages (6.74 percent compared to 5.37 percent in February); transport (3.7 percent compared to 1.97 percent), namely fuels (2.92 percent compared to -0.59 percent); housing (6.1 percent compared to 6.04 percent); personal expenses (3.51 percent compared to 3.40 percent); household goods (4.31 percent compared to 4.11 percent); education (4.89 percent compared to 4.85 percent); and clothing and footwear (0.6 percent compared to 0.48 percent). Also, cost of communication fell less (-0.1 percent compared to -0.29 percent). On the other hand, cost of health eased (3.84 percent compared to 3.90 percent). 

On a monthly basis, consumer prices went up 0.75 percent, after rising 0.43 percent in the prior month and above market consensus of 0.39 percent. Main upwardly pressure came from food and non-alcoholic beverages (1.37 percent compared to 0.78 percent in February), namely tomatoes (31.84 percent), potatoes (21.11 percent), beans (12.93 percent) and fruits (4.26 percent); and transport (1.44 percent compared to -0.34 percent), boosted by fuels (3.49 percent), air tickets (7.29 percent) and bus tickets (0.90 percent); and clothing and footwear (0.45 percent compared to -0.33 percent). Meanwhile, cost of communication dropped 0.22 percent, after a flat reading in February.

Brazil Annual Inflation Rate at Over 2-Year High in March


IBGE |Stefanie Moya | stefanie.moya@tradingeconomics.com
4/10/2019 12:29:40 PM