Consumer prices in Brazil fell 0.21 percent month-over-month in November of 2018, following a 0.45 percent rise in the previous month and worse than market expectations of a 0.1 percent drop. It is the biggest monthly decline in consumer prices since June of 2017 and the sharpest for a November month since at least 1994. Main downward pressure came from cost of transport (-0.74 percent), mainly due to fuels (-2.42 percent), namely gasoline (-3.07 percent); and housing (-0.71 percent), namely electricity (-4.04 percent) due to changes in tariffs. Prices also went down 0.71 percent for health and personal care, mainly due to personal hygiene items (-4.56 percent). On the other hand, food prices went up 0.39 percent. Inflation Rate Mom in Brazil averaged 6.53 percent from 1980 until 2018, reaching an all time high of 82.39 percent in March of 1990 and a record low of -0.51 percent in August of 1998.
Inflation Rate Mom in Brazil is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate Mom in Brazil to stand at 0.60 in 12 months time. In the long-term, the Brazil Inflation Rate MoM is projected to trend around 0.40 percent in 2020, according to our econometric models.