Brazil Inflation Rate at 1-1/2-Year High



Annual inflation rate in Brazil increased to 4.53 percent in September of 2018 from 4.19 percent in August, above market expectations of 4.45 percent. It is the highest inflation rate since March of 2017, mainly driven by higher oil and food prices and reaching the midpoint of the central bank's target range of 4.5 percent +/- 1.5 percent.

Year-on-year, prices rose faster for food and non-alcoholic beverages (2.68 percent compared to 2.15 percent); transport (6.93 percent compared to 5.98 percent in August), namely fuels (17.69 percent compared to 15.13 percent); housing (7.8 percent compared to 7.28 percent), namely electricity (20.37 percent compared to 16.85 percent); and education (5.27 percent comapred to 5.06 percent). On the other hand, inflation eased for clothing and footwear (1.22 percent compared to 1.52 percent); health and personal care (5.39 percent compared to 5.44 percent); household goods (1.07 percent compared to 1.1 percent); and communications (0.41 percent compared to 0.97 percent).

On a monthly basis, consumer prices rose 0.48 percent, rebounding from a 0.09 percent drop in August and above market expectations of a 0.41 percent rise. It is the highest monthly rate for a September month since 2015 when prices went up 0.54 percent. Prices of food and beverages (0.1 percent compared to -0.34 percent in August) and transport (1.69 percent compared to -1.22 percent) rebounded while cost of housing eased slightly (0.37 percent compared to 0.44 percent). Biggest upward pressure came from cost of gasoline (3.94 percent compared to -1.45 percent), ethanol (5.42 percent compared to -4.69 percent), diesel oil (6.91 percent compared to -0.29 percent), air fares (16.81 percent compared to -26.12 percent), fruit (4.42 percent), rice (2.16 percent) and French bread (0.96 percent).

Brazil Inflation Rate at 1-1/2-Year High


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
10/5/2018 1:40:04 PM