Brazil Inflation Rate Falls To Nearly 2-Year Low

Consumer prices in Brazil rose 6.99 percent in the 12 months through November 2016, down from an increase of 7.87 percent in the previous month and below market consensus of a 7.08 percent gain. It was the lowest inflation rate since December 2014, as prices rose at a slower pace for food, housing and transportation. Still, inflation remained above the central bank's official target of 4.5 percent.

Prices rose at a slower pace for: food and non-alcoholic beverages (+10.17 percent from +12.41 percent in October); housing and utilities (+3.97 percent from +4.45 percent); and transport (+4.48 percent from +5.31 percent). Additional upward pressure came from: Health (+11.27 percent); recreation and culture (+6.15 percent); clothing (+4.40 percent); furnishings and household equipment (+1.81 percent); and communication (+1.69 percent).

The highest inflation rates were recorded for Belém (+8.04 percent), Porto Alegre (+7.87 percent), Campo Grande (+7.76 percent) and Recife (+7.70 percent), while the lowest rates were recorded for Curitiba (+5.48 percent), Vitória (+5.50 percent) and Brasília (+5.72 percent).

On a monthly basis, consumer prices increased by 0.18 percent, following a 0.26 percent rise in October. Cost rose at a slower pace for housing (+0.30 percent from +0.42 percent in October) and transport (+0.28 percent from +0.75 percent); while it fell for food (-0.20 percent from -0.05 percent). 

Brazil Inflation Rate Falls To Nearly 2-Year Low

IBGE | Joana Ferreira |
12/9/2016 11:21:00 AM