Brazil Inflation Rate Slows to 16-Month Low


Consumer prices in Brazil rose 8.48 percent year-on-year in September of 2016, easing from an 8.97 percent increase in August and below market estimates of 8.6 percent. It is the lowest inflation figure since May last year due to a slowdown in cost of food, transport and housing.

Cost of food and non-alcoholic beverages increased 13.33 percent (13.92 percent in August), with prices of cereals, pulses and oleaginous recording the biggest gain (62.84 percent) and tubers, roots and vegetables the only fall (-5.31 percent). Inflation for transport also eased (6.33 percent from 7.19 percent in August), with fuel prices slowing (11.22 percent from 11.38 percent). In addition, housing prices went up a slower 4.78 percent (5.48 percent in August) of which rents went up 9.11 percent (9.39 percent in August) while electricity cost fell 5.65 percent (-5.51 percent in August). 

On a monthly basis, consumer prices edged up 0.08 percent from 0.44 percent in August. It is the lowest inflation figure for a September month since 1998. Food prices declined 0.29 percent, housing articles fell 0.26 percent and transport fell 0.1 percent. 

 Brazil Inflation Rate Slows to 16-Month Low


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
10/7/2016 12:24:27 PM