Brazil Inflation Rate Up to 3-Year High

Brazilian annual inflation rate accelerated to 6.75 percent in September of 2014 from 6.51 percent in August. It is the highest rate since October of 2011, mainly driven by a rise in meat prices.

The inflation rate stayed above the upper limit of the central bank's target range for the first time in fifteen months. 

On a monthly basis, consumer prices rose 0.57 percent, more than doubling the 0.25 percent increase in August. Food prices were the main contributor, rising for the first time in four months (surged 0.78 percent, following a 0.15 percent drop in August). Meat cost rose 3.17 percent on average, while in Vitória and Campo Grande it increased 6.12 percent and 5.06 percent, respectively.

Additional upward pressures came from housing cost (+0.77 percent), transport (+0.63 percent) and clothing (+0.57 percent). 

Among regions, Rio de Janeiro recorded the highest annual inflation rate (7.63 percent) and Belém and Goiânia the lowest (6.26 percent each). In São Paulo, the inflation was recorded at 6.66 percent. 

Brazil Inflation Rate Up to 3-Year High

Joana Taborda |
10/8/2014 1:35:09 PM