Brazil Inflation Rate Highest Since November 2003


Consumer prices in Brazil increased 10.71 percent year-on-year in January of 2016, accelerating for the fourth straight month and reaching a fresh 12-year high. Figures came slightly above market expectations mainly due to a rise in food prices. The country is struggling with stubbornly high inflation since mid-2014 after the government imposed several tax increases aiming at balancing overall budget while a weak real pushes import prices up. The real fell around 47 percent to the USD in 2015.

Prices of food and beverages increased at a faster 12.9 percent (12 percent in December) while cost of housing grew at a slightly slower pace (16.46 percent from 18.31 percent in December) and transport inflation was steady (10.1 percent from 10.16 percent in December).

On a monthly basis, consumer prices went up 1.27 percent, the biggest rise since March last year and the highest for a January month since 2003. The strongest upward pressure came from food and beverages (up 2.28 percent), the highest increase since December of 2002 and transport (up 1.77 percent) while clothing prices declined 0.25 percent. 

Brazil Inflation Rate Highest Since November 2003


Joana Taborda | joana.taborda@tradingeconomics.com
2/5/2016 11:31:03 AM