Brazil Inflation Rate Rises to 2.7% in October


Consumer prices in Brazil increased 2.7 percent year-on-year in October of 2017, above 2.54 percent in September and compared to market expectations of 2.75 percent, mainly due to rising electricity cost. The inflation went up for the second month after touching 2.46 percent in August, the lowest since 1999. Yet, the cumulative inflation for the first ten months of the year stands at 2.21 percent, well below 5.78 percent in the same period of 2016.

Year-on-year, prices rose faster for housing (5 percent compared to 4.1 percent in September), namely domestic fuels (12.09 percent) and electricity (5.68 percent); health and personal care (6.86 percent compared to 6.77 percent) and personal expenses (5.05 percent compared to 4.73 percent). Inflation for communication was steady at 2.01 percent and cost of food and non-alcoholic beverages fell 2.14 percent, the same as in September. On the other hand, prices rose less for transport (3.73 percent compared to 3.99 percent); clothing (2.45 percent compared to 6.77 percent) and education (7.05 percent compared to 7.15 percent).

On a monthly basis, consumer prices went up 0.42 percent, above 0.16 percent in September and the highest since August of 2016. The housing index went up 1.33 percent and made the largest upward impact, mainly due to a 3.28 percent surge in electricity cost after a tax increase. In October, a new fee came into effect, representing an additional charge of BRL 3.50 per 100 kwh consumed. In September, the fee was lower at BRL 2.00 per 100 kwh consumed.

Brazil Inflation Rate Rises to 2.7% in October


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
11/10/2017 11:41:28 AM