Brazil Inflation Rate Down To 10-Year Low Of 3.6%

Consumer prices in Brazil increased 3.6 percent year-on-year in May of 2017, following a 4.08 percent rise in April and below market expectations of 3.77 percent. The inflation slowed for the ninth straight month to the lowest since May of 2007. Inflation for food and beverages was the smallest since January of 2007 while prices increased more for housing and utilities, transport and clothing.

Prices rose at a slower pace for: food and beverages (2.36 percent from 3.51 percent in April); health (7.84 percent from 8.91 percent); personal expenses (5.32 percent from 6.5 percent) and education (8.04 percent from 8.12 percent). In addition, prices fell for furnishings; household equipment (-0.4 percent from 0.46 percent). On the other hand, cost increased more for housing and utilities (4.07 percent from 3.72 percent); transport (1.84 percent from 1.68 percent) and clothing (2.35 percent from 2.28 percent). 

On a monthly basis, consumer prices increased 0.31 percent, higher than 0.14 percent in April, mainly due to an 8.98 percent jump in electricity cost. In April, electricity prices fell 6.39 percent after discounts were made in order to compensate consumers for improper collection in 2016.

IBGE | Joana Taborda |
6/9/2017 12:22:43 PM