Brazil Inflation Rate Back To Central Bank Target


Consumer prices in Brazil increased 4.08 percent year-on-year in April of 2017, following a 4.57 percent rise in March and in line with market expectations of 4.1 percent. The inflation rate slowed for the eighth straight month to the lowest since July of 2007, standing below the central bank target of 4.5 percent for the first time since December of 2009.

Prices rose at a slower pace for: food and beverages (3.51 percent from 4.04 percent in March); housing and utilities (3.72 percent from 4.47 percent); transport (1.68 percent from 1.77 percent); health (8.91 percent from 10.34 percent); personal expenses (6.5 percent from 6.64 percent); furnishings; household equipment (0.46 percent from 1 percent); communication (1.8 percent from 2.74 percent) and education (8.12 percent from 8.3 percent). In contrast, prices went up faster for clothing (2.28 percent from 2.2 percent). 

On a monthly basis, consumer prices increased 0.14 percent, following a 0.25 percent rise in March and compared to market expectations of 0.16 percent. It is the lowest monthly rate in seven months. Biggest downward pressure came from electricity cost (-6.39 percent) and fuels (-1.95 percent). The decline in electricity was due to discounts made to compensate consumers for the undue payment in 2016 of an extra charge to finance the Angra III plant. 

IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
5/10/2017 12:23:15 PM