Brazil Inflation Rate Lower than Expected in November

Consumer prices in Brazil increased 2.8 percent year-on-year in November of 2017, the most since June but below market expectations of 2.88 percent. The inflation rate had been on the upward trend since August when it touched 2.46 percent, the lowest since 1999.

Year-on-year, prices rose faster mainly for housing (6.05 percent compared to 5 percent in October) and transport (3.98 percent compared to 3.73 percent). In contrast, food prices declined further by 2.3 percent from 2.1 percent.

The cumulative inflation for the first eleven months of the year stands at 2.5 percent, well below 5.97 percent in the same period of 2016, making it likely that full-year inflation will drop below the official target of 4.5 percent for the first time in two decades.

On a monthly basis, consumer prices increased 0.28 percent, below 0.42 percent in October and market expectations of 0.35 percent. A slowdown was seen in cost of housing (1.27 percent compared to 1.33 percent) and clothing (0.1 percent compared to 0.71 percent). Also, cost of food and beverages dropped more (-0.38 percent compared to -0.05 percent), namely cassava flour (-4.78 percent); tomatoes (-4.64 percent); fruit (-2.09 percent), French bread (-0.55 percent) and meat (-0.11 percent); and articles for residence (-0.45 percent compared to -0.39 percent). On the other hand, prices rose faster for transport (0.52 percent compared to 0.49 percent), namely gasoline (2.92 percent) and ethanol (4.14 percent) and personal expenses (0.42 percent compared to 0.32 percent). 

 Brazil Inflation Rate Lower than Expected in November

IBGE | Joana Taborda |
12/8/2017 4:20:01 PM