Brazil Inflation Rate Rises to 8.97% in August

Consumer prices in Brazil rose 8.97 percent year-on-year in August of 2016, accelerating slightly from an 8.74 percent increase in July and barely in line with market expectations of 8.98 percent. The inflation remained well above the central bank’s mid-point target of 4.5 percent, mainly due to higher food and transport prices. Policymakers expect the inflation to be around 7.3 percent this year.

Cost of food and non-alcoholic beverages rose 13.92 percent (13.58 percent in July), with prices of cereals, pulses and oleaginous jumping 65.26 percent. Transport prices increased 7.19 percent (6.61 percent in July), with fuels up 11.38 percent. Housing prices rose 5.48 percent (5.46 percent in July) of which rents went up 9.39 percent while electricity cost fell 5.51 percent. 

The highest inflation rates were recorded in Fortaleza (11.03 percent), Belo Horizonte (9.96 percent) and Rio de Janeiro (9.86 percent). In São Paulo, consumer prices increased 8.84 percent.

On a monthly basis, the inflation eased to 0.44 percent from 0.52 percent in July, mainly due to a slowdown in food inflation (0.3 percent from 1.32 percent). 

Brazil Inflation Rate Rises to 8.97% in August

IBGE | Joana Taborda |
9/9/2016 1:32:53 PM