Brazil Annual Inflation Rate Eases to 4.66% in May


The annual inflation rate in Brazil fell to 4.66 percent in May 2019 from 4.94 percent in the previous month and below market expectations of 4.72 percent. The slowdown was mainly driven by cost of food and non-alcoholic beverages and transport.

Year-on-year, prices eased for food and non-alcoholic beverages (6.36 percent compared to 7.31 percent in March); transport (4.33 percent compared to 4.67 percent), namely fuels (5.07 percent compared to 5.42 percent); personal expenses (3.61 percent compared to 4.45 percent); household goods (3.79 percent compared to 3.84 percent); and education (4.80 percent compared to 4.91 percent). Additionally, cost dropped for clothing and footwear (-0.08 percent compared to 0.16); and communication (-0.19 percent compared to a flat reading). On the other hand, prices advanced further for housing (6.34 percent compared to 6.18 percent); and health (4.48 percent compared to 4.45 percent).

On a monthly basis, consumer prices went up 0.13 percent, after a 0.57 percent gain in April and below market consensus of a 0.2 percent rise. Prices declined for food and non-alcoholic beverages (-0.56 percent compared to 0.63 percent in April), namely tomato (-15.08 percent), beans (-13.04 percent) and fruits (-2.87 percent); education (-0.04 percent compared to 0.09 percent); and communication (-0.03 percent compared to 0.03 percent). Also, cost slowed for transport (0.07 percent compared to 0.94 percent), of which air tickets (-21.82 percent); health (0.59 percent compared to 1.51 percent); and personal expenses (0.16 percent compared to 0.17 percent). 

Brazil Annual Inflation Rate Eases to 4.66% in May


IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com
6/7/2019 12:17:38 PM