Brazil Inflation Rate Eases Slightly in August

Consumer prices in Brazil increased 9.53 percent year-on-year in August of 2015, slowing slightly from a 9.56 percent rise in July. The monthly inflation rate eased for the second straight month to 0.22 percent, the lowest since July of 2014.

On a monthly basis, the highest upward pressure came from prices of personal expenses (up 0.75 percent), followed by health and personal care (up 0.62 percent), education (up0.82 percent) and housing (up 0.29 percent). 

In contrast, transport prices fell 0.27 percent, mainly driven by a 24.9 percent drop in cost of air fare while cost of food and non-alcoholic beverages was marginally unchanged. 

The central bank initiated a rate hike campaign in September last year when annual inflation reached 6.5 percent. Since then, policymakers raised the benchmark SELIC rate by 325 basis points in an attempt to control stubbornly high inflation that reached a nearly 12-year high in July. However, the monthly rate is slowing, reaching the lowest value for an August month in five years.

Brazil Inflation Rate Eases Slightly in August

Joana Taborda |
9/10/2015 5:29:02 PM