Brazil April Inflation Rate Ticks Up to 2.76%


Inflation rate in Brazil increased to 2.76 percent year-on-year in April of 2018 from 2.68 percent in March and compared to market expectations of 2.82 percent. Still, the inflation rate remained far below the central bank target of 4.5 percent ± 1.5 p.p. Prices rose faster for transport, housing and personal expenses while grew at a slower pace for health and food. Considering the first four months of 2018, the cumulative inflation was 0.9 percent, the lowest for an April month since the real was implemented in 1994.

Year-on-year, inflation picked up for transport (5.67 percent vs 5.60 percent in March); housing (5.46 percent vs 4.13 percent) and personal expenses (3.54 percent vs 3.51 percent). On the other hand, prices slowed for health (5.78 percent vs 5.88 percent) and fell for food and non-alcoholic beverages (-2.11 percent vs -1.64 percent) and articles for the residence (-0.54 percent vs -1.03 percent).

On a monthly basis, consumer prices were up 0.22 percent, compared to a 0.09 percent increase in March and market estimates of a 0.28 percent rise. The biggest upward pressure stemmed from monthly cost of health and personal care (0.91 percent vs 0.48 percent), mainly due to medicines (1.52 percent) and health insurance (1.06 percent). Also, prices rose faster for clothing (0.62 percent vs 0.33 percent), especially for women (1.66 percent); articles for the residence (0.22 percent vs 0.08 percent), of which household appliances (0.42 percent); and personal expenses (0.12 percent vs 0.05 percent). Meantime, cost was flat for transport (from -0.25 percent in March), as increases in prices of car repair (1.31 percent) and gasoline (0.26 percent) offset declines in those of ethanol (-2.73 percent) and airline tickets (-2.67 percent). Housing prices increased 0.17 percent, slightly below 0.19 percent in March.


Brazil April Inflation Rate Ticks Up to 2.76%


IBGE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
5/10/2018 1:50:43 PM