Brazilian Inflation Rate at 20-Month High in June

In June of 2013, Brazilian annual inflation rate accelerated to 6.7 percent, from 6.5 percent in May, the highest rate since October of 2011, due to higher food prices.

Year on year, food prices grew 12.8 percent, mainly due to higher cost of cassava flour (up by 128.5 percent), tomatoes (+ 63.41 percent), onion (+58.5 percent) and garlic (+ 31 percent). In contrast, cost of sugar and soybean oil dropped by 11.5 and 3 percent, respectively.

Among non food products the highest price increases were registered for personal expenditures (+ 8.7 percent); education (+ 7.8 percent) and clothing (6.5 percent). 

From May to June, prices increased 0.26 percent, down from 0.37 percent in May, the lowest rate since June of 2012. Food price increase decelerated to 0.04 percent, from 0.31 percent in May. In contrast, cost of transport, education and communication went up by 0.14 percent, 0.18 percent and 0.19 percent, respectively. 

Brazilian Inflation Rate at 20-Month High in June

IBGE | Joana Taborda |
7/5/2013 3:24:59 PM