Brazil Inflation Rate Rises to 3-Month High in August

The annual inflation rate in Brazil rose to 3.43 percent in August 2019 from 3.22 percent in the previous month and slightly below market consensus of 3.44 percent. Prices went up further mainly due to cost of transport and housing.
IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com 9/6/2019 12:18:41 PM
Year-on-year, prices advanced at a faster pace for transport (2.57 percent from 1.72 percent in July); housing (4.27 percent percent from 3.50 percent), namely rents (4.85 percent from 4.57 percent) and electricity (4.96 percent from 2.04 percent); clothing (0.51 percent from 0.48 percent); and communication (0.33 percent from 0.27 percent). On the other hand, cost slowed for food & non-alcoholic beverages (4.12 percent from 4.13 percent); personal expenses (3.52 percent from 3.56 percent); health (3.88 percent from 4.47 percent); and education (4.95 percent from 5.05 percent). Also, inflation was steady for household goods (at 3.28 percent). 

On a monthly basis, consumer prices went up 0.11 percent, easing from a 0.19 percent gain in the prior month and matching market forecasts. Cost of food & non-alcoholic beverages declined 0.35 percent, after increasing 0.01 percent, in particular tomatoes (-24.49 percent), english potato (-9.11 percent) and vegetables (-6.53 percent). In addition, prices dropped further for transport (-0.39 percent from -0.17 percent), namely flight tickets (-15.66 percent) and slowed for housing (1.19 percent from 1.20 percent) personal expenses (0.31 percent from 0.44 percent) and communication (-0.09 percent from 0.57 percent).

Brazil Inflation Rate Rises to 3-Month High in August