Brazil July Inflation Rate Rises Further to 16-Month High
Brazil's annual inflation rate increased to 4.48 percent in July 2018 from 4.39 percent in the previous month, slightly above market expectations of 4.4 percent. It was the highest rate since March 2017 mainly due to higher prices of food and transport. Still, the inflation was lower than the 4.53 percent rate seen in mid-July, as the impact of a May nationwide truckers' strike faded.
Year-on-year, prices increased more for food and beverages (1.40 percent vs 1.05 percent in June) and transport (8.94 percent vs 8.78 percent). On the other hand, inflation slowed for housing (7.41 percent vs 7.52 percent); health and personal care (5.31 percent vs 5.63 percent); personal expenses (3.37 percent vs 3.42 percent); clothing (1.61 percent vs 1.80 percent) and education (5.05 percent vs 5.11 percent).
On a monthly basis, consumer prices went up 0.33 percent, following a 1.26 percent rise in June but still above market expectations of a 0.27 percent gain. Prices eased mostly for transport (0.49 percent vs 1.58 percent) and housing (1.54 percent vs 2.48 percent) while declined for food and beverages (-0.12 percent vs 2.03 percent), the category most affected by the strike, as supplies normalized across the country.
8/8/2018 1:33:25 PM