Brazil Inflation Remains Above Goal Despite Softer-than-Expected October Reading
Cheaper electricity and air fares offset rising food costs, while the central bank kept its benchmark Selic rate at 13.75% to curb inflation.
- On Thursday, IBGE, Brazil's national statistics agency, reported consumer prices rose 0.14% in October, slowing from September's 0.82%, though the 12-month inflation rate of 4.63% remains above the Banco Central do Brasil's target ceiling.
- Monthly inflation was driven by food and beverage prices rising 1.04%, while transport costs fell 0.59% and housing costs declined 0.51%, according to IBGE data.
- The annual rate exceeds the Banco Central's target of 3%, plus or minus 1.5 percentage points, while economists had forecast a 0.25% monthly rise that did not materialize.
- Policymakers at the Banco Central paused their easing cycle last week, holding the benchmark Selic rate at 13.75% as they grapple with persistent inflation pressures.
- Economists in the Banco Central's weekly Focus survey expect 5.22% inflation for 2026, while the central bank itself projects 5.6%, with the next Selic decision due December 9.
29 Articles
29 Articles
Brazil inflation remains above goal despite softer-than-expected October reading
SAO PAULO, Nov 12 (Reuters) - Consumer prices in Brazil rose less than expected in the 12 months through October but remained above the central bank's target range, as policymakers vow to keep using high interest rates to rein in persistent inflation...
Brazil's inflation lost its breath and closed in October at 0.14%, up 0.83% in September, indicating data released today by the IBGE (Instituto Brasileiro de Geografia e Estatística).
Inflation slowed down and stood at 0.14% in October, driven by the fall in residential energy and gasoline. Last month, the index had stood at 0.82%. Still, in 12 months, the indicator accumulated high 4.63% in the last few months, above the ceiling of the target. Data are from the National Broad Consumer Price Index (HICP) and were released by IBGE on Thursday. Effect: Analysts estimate an impact of 0.3 points on inflation in 2027 at the end of…
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
