Brazil Inflation Rate Lowest in 6 Months


Annual inflation rate in Brazil eased to 4.05 percent in November of 2018 from 4.56 percent in October and below market expectations of 4.19 percent. It is the lowest inflation rate in six months, due to slowing prices for electricity and fuels. So far this year, inflation was 3.59 percent, above 2.5 percent in the same period of 2017.

Year-on-year, inflation eased for housing (4.46 percent compared to 6.54 percent), namely electricity (7.46 percent compared to 16.69 percent) and fuels (5.46 percent compared to 6.47 percent); transportation (6.03 percent compared to 7.38 percent); health (4.04 percent compared to 5.13 percent); personal expenses (3.11 percent compared to 3.17 percent); and clothing and footwear (0.31 percent compared to 0.84 percent). On the other hand, inflation picked up for food and non-alcoholic beverages (4.14 percent from 3.33 percent in October), namely tubers, roots and vegetables (26.96 percent compared to 7.88 percent), fruits (12.14 percent compared to 9.84 percent) and bread (6.31 percent compared to 5.54 percent).

On a monthly basis, consumer prices fell 0.21 percent, following a 0.45 percent rise in the previous month and worse than market expectations of a 0.1 percent drop. It is the biggest monthly decline in consumer prices since June of 2017 and the sharpest for a November month since at least 1994. Main downward pressure came from cost of transport (-0.74 percent), mainly due to fuels (-2.42 percent), namely gasoline (-3.07 percent); and housing (-0.71 percent), namely electricity (-4.04 percent) due to changes in tariffs. Prices also went down 0.71 percent for health and personal care, mainly due to personal hygiene items (-4.56 percent). On the other hand, food prices went up 0.39 percent.

Brazil Inflation Rate Lowest in 6 Months


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
12/7/2018 11:27:42 AM