Brazil Inflation Rate Climbs to 15-Month High
Brazil's annual inflation rate jumped to 4.39 percent in June 2018 from 2.86 percent in the previous month. The rate came in slightly below market expectations of 4.42 percent, still hitting the highest level since March 2017 on the back of persistent currency weakness.
Food and beverage prices surged 1.05 percent in June, the first annual gain in one year, following a 1.46 percent drop in the previous month. Additional upward pressure came from: housing (7.52 percent vs 4.11 percent); transport (8.78 percent vs 6.54 percent); household goods (0.04 percent vs -0.37 percent); clothing (1.80 percent vs 2.18 percent); health and personal care (5.63 percent vs 5.72 percent); personal expenses (3.42 percent, the same as in May); education (5.11 percent vs 5.17 percent); and communication (0.28 percent vs 0.37 percent).
On a monthly basis, consumer prices jumped 1.26 percent in June, following a 0.4 percent gain in May and almost matching market consensus of 1.28 percent. It was the highest monthly inflation since January 2016, driven by higher cost for food and beverages (2.03 percent vs 0.32 percent), housing (2.48 percent vs 0.83 percent), transport (1.58 percent vs 0.40 percent), health and personal care (0.37 percent vs 0.57 percent) and personal expenses (0.33 percent vs 0.11 percent).
7/6/2018 12:24:27 PM