Brazil Inflation Rate Edges Up to 2.54%, 1st Rise in 13 Months


Consumer prices in Brazil increased 2.54 percent year-on-year in September of 2017, slightly higher than a 2.46 percent rise in August which was the lowest inflation rate since February of 1999. It compares with market expectations of 2.47 percent. It is the first rise in inflation rate since August of 2016 amid higher prices for transport. Yet, the cumulative inflation for the first nine months of the year stands at 1.78 percent, well below 5.51 percent in the same period of 2016.

Year-on-year, prices rose faster for transport (3.99 percent compared to 3.08 percent in August) and personal expenses (4.73 percent compared to 4.25 percent) while the inflation slowed for housing (4.1 percent compared to 4.88 percent); health (6.77 percent compared to 6.78 percent); clothing (4.18 percent compared to 2.33 percent) and education (7 percent compared to 7.15 percent). Prices of food and non-alcoholic beverages fell faster (-2.14 percent compared -2.01 percent), marking a new record drop since at least 1990.

On a monthly basis, consumer prices increased 0.16 percent, below 0.19 percent in August but above market expectations of 0.09 percent. Transport cost made the highest upward pressure as prices increased 0.79 percent, mainly due to gasoline (2.22 percent) and air fares (21.9 percent). On the other hand, prices fell 2.48 percent for electricity and 0.41 percent for food.

IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
10/6/2017 1:20:34 PM