Brazil Inflation Rate Barely Unchanged at 3.78%


Annual inflation rate in Brazil was nearly steady at 3.78 percent in January of 2019 from 3.75 percent in December, compared to market expectations of 3.7 percent. Food inflation was the highest since February of 2017 while fuel prices slowed sharply, manly due to gasoline.

Year-on-year, inflation went up for food and non-alcoholic beverages (4.21 percent vs 4.04 percent in December); personal expenses (3.38 percent vs 2.98 percent); housing (5.87 percent vs 4.72 percent), namely electricity (13.96 percent vs 8.7 percent); personal expenses (3.38 percent vs 2.98 percent); and household goods (3.93 percent vs 3.74 percent). On the other hand, prices rose less for transport (3.07 percent vs 4.19 percent), mainly due to fuels (1.33 percent vs 6.17 percent); health (3.79 percent vs 3.95 percent); clothing and footwear (0.43 percent vs 0.61 percent); and education (5.22 percent vs 5.32 percent); and declined for communication (-0.15 percent vs -0.09 percent). 

On a monthly basis, consumer prices increased 0.32 percent, higher than 0.15 percent in December and above market expectations of 0.13 percent. Cost of food and non-alcoholic beverages rose the most (0.9 percent vs 0.44 percent in December), namely carioca beans (19.76 percent), onions (10.21 percent), fruit (5.45 percent) and meat (0.78 percent); followed by personal expenses (0.61 percent vs 0.29 percent), namely trips (6.77 percent), hotels (1.06 percent) and hairdressing (0.69 percent). Also, prices of housing rebounded (0.24 percent vs -0.15 percent), mainly due to cost of residential rents (0.42 percent) and condominium (0.77 percent) while prices of electricity fell less (-0.13 percent). Cost of transport was nearly flat (0.02 percent vs -0.54 percent) as fuels decreased at a slower pace (-2.09 percent).

Brazil Inflation Rate Barely Unchanged at 3.78%


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
2/8/2019 11:34:50 AM