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


Annual inflation rate in Brazil rose to 4.56 percent in October of 2018 from 4.53 percent in September, below market expectations of 4.66 percent. It is the highest inflation rate since March 2017. Main upward pressure came from prices of food and fuels.

Year-on-year, inflation picked up for food and non-alcoholic beverages (3.33 percent from 2.68 percent in September), such as milk and other dairy products (14.02 percent vs 13.18 percent), fruits (9.84 percent vs 9.67 percent); and transport (7.38 percent vs 6.93 percent), namely fuels (20.07 percent vs 17.69 percent). Meanwhile, prices slowed for: housing (6.54 percent vs 7.80 percent), particularly electricity (16.69 percent vs 20.37 percent); health and personal care (5.13 percent vs 5.39 percent); personal expenses (3.17 percent vs 3.25 percent); clothing and footwear (0.84 percent vs 1.22 percent); education (5.25 percent vs 5.27 percent); household goods (2.23 percent vs 1.07 percent) and communication (0.02 percent vs 0.41 percent).

On a monthly basis, consumer prices went up 0.45 percent, easing from a 0.48 percent increase in September and below market consensus of a 0.55 percent rise. Prices advanced at a slower pace mainly for transport (0.92 percent vs 1.69 percent), namely ethanol (4.07 percent vs 5.42 percent), diesel oil (2.45 percent vs 6.91 percent), gasoline (2.18 percent vs 3.94 percent) and air fares (7.49 percent vs 16.81 percent). Also, monthly inflation softened for housing (0.14 percent vs 0.32 percent), including rents (0.11 percent vs 0.25 percent) and electricity (0.12 percent vs 0.46 percent). In contrast, cost rose faster for food & non-alcoholic beverages (0.59 percent vs 0.10 percent), of which tomato (51.27 percent), English potatoes (13.67 percent) and chicken (1.95 percent).

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


IBGE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
11/7/2018 12:54:04 PM