Brazil Inflation Rate Lowest in 1 Year

Consumer prices in Brazil increased by 8.84 percent year-on-year in June of 2016, easing from a 9.32 percent growth in May and beating market consensus of 8.87 percent. It was the lowest reading since May last year, as cost of housing and transportation rose at a slower pace. Still, inflation remained well above the central bank's official target of 4.5 percent.

Cost of housing (+7.37 percent from +7.62 percent in May) and transportation (+6.34 percent from +7.66 percent) went up at a slower pace. Additional upward pressure came from: Food and non-alcoholic beverages (+12.83 percent); health (+11.79 percent); education (+9.15 percent); recreation and leisure activities (+8.04 percent) and furnishings and household equipment (+6.03 percent).

The highest inflation rates were recorded for Fortaleza (+10.37 percent), Porto Alegre (+9.67 percent) and Goiânia (+9.29 percent), while the lowest rates were recorded for Vitória (+7.43 percent), Brasília (+7.55 percent) and Belo Horizonte (+8.24 percent).

On a monthly basis, consumer prices rose 0.35 percent, slowing from a 0.78 percent growth in the previous month, as prices of housing (+0.63 percent from +1.79 percent in May) and food (+0.71 percent from +0.78 percent) rose at a slower pace while cost of transportation continued to fall (-0.58 percent from -0.53 percent).

Brazil Inflation Rate Lowest in 1 Year

IBGE | Joana Ferreira |
7/8/2016 1:22:36 PM