Brazil Inflation Rate Accelerates to 12-Year High

Consumer prices in Brazil went up 9.93 percent year-on-year in October of 2015, the highest since November of 2003. The inflation rate accelerated again after slowing marginally in the previous two months, staying further away from the 6.5 percent upper limit of the central bank's target range.

Year-on-year, housing prices recorded the highest increase (18.25 percent from 18.17 percent in September). Electricity cost surged 52.3 percent (52.79 percent in September), domestic fuel rose 21.81 percent (19.16 percent in September) and rental and fees increased 8.52 percent.

Food and drink prices rose 10.39 percent (10.06 percent in September) and transport cost gained 9.48 percent (8.05 percent in September): fuel surged 17.64 percent (11.1 percent in September) and public transportation jumped 10.24 percent (9.81 percent in September). 

On a monthly basis, consumer prices rose 0.82 percent in October, following a 0.54 percent increase in September. It is the highest figure since March and the biggest for an October month since 2002. Transport prices accounted the most for the rise (up 1.72 percent), followed by food and beverages (up 0.77 percent) and housing (up 0.75 percent). 

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 fell 45 percent to the USD in the first ten months of the year. 

Brazil Inflation Rate Accelerates to 12-Year High

Joana Taborda |
11/6/2015 11:38:18 AM