The inflation decelerated slightly for the second straight month after reaching a nearly 12-year high of 9.56 percent in July, a sign inflationary pressures may be slowing after the central bank rate-hike campaign increased borrowing cost to its highest in nine years.
Year-on-year, housing cost recorded the highest increase in September (up 18.17 percent), boosted by a 52.79 percent surge in electricity cost, followed by domestic fuel (up 19.16 percent) and rent and tariffs (9.43 percent). Food prices increased 10.06 percent and transport cost went up 8.05 percent as fuels rose 11.1 percent and public transportation increased 9.81 percent.
On a monthly basis, consumer prices went up 0.54 percent, higher than a 0.22 percent in August, but the second lowest gain in ten months.
Housing cost accounted the most for the rise (up 1.3 percent), driven by gas. The liquefied petroleum gas for residential use became 12.98 percent more expensive in September, though there were big differences among regions. For example in Rio de Janeiro gas prices rose by 9.49 percent, in Vitória by 20.8 percent, in Goiânia by 19.68 percent and in Brasília by 19.23 percent. Additional upward pressure came from transport prices (up 0.71 percent), mainly driven by a 23.13 percent increase in airfare prices.
The country is struggling to fight stubbornly high inflation after the government imposed several tax increases aiming at balancing overall budget and a weak currency – the real already fell 49 percent to the USD in the first nine months of the year. From January to September, consumer prices went up 7.64 percent.