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Montevideo, September 20th 2018 - 00:48 UTC

July inflation in Brazil remains over target: 8.74% in twelve months

Monday, August 15th 2016 - 15:09 UTC
Full article 3 comments
Higher-than-expected inflation this year has forced the central bank to keep its benchmark Selic rate near 10-year highs despite a crippling recession Higher-than-expected inflation this year has forced the central bank to keep its benchmark Selic rate near 10-year highs despite a crippling recession

Inflation in Brazil rose more sharply in July than economists expected, official data showed, raising pressure on the central bank to keep interest rates on hold for some time.

 Consumer prices as measured by the benchmark IPCA index , rose 0.52% last month. Prices rose 8.74% in the 12 months through July, slowing from a one-year increase of 8.84% in June. In the seven months of this year inflation reached 4.96%.

Food and beverages jumped 1.32%; Health and personal care, 0.61%; Household articles, 0.53%; Personal expenses, 0.70%, and Transport, 0.40%. Education and Communications remained almost unchanged, while Housing and Apparel were down, 0.29% and 0.38%.

Higher-than-expected inflation this year has forced the central bank to keep its benchmark Selic rate near 10-year highs even as the country struggles with a crippling recession that is now in its second year.

High interest rates and growing expectations that austerity measures under interim President Michel Temer will be approved have recently curbed inflation expectations for this year and next.

Less government spending and more-expensive credit lead to lower consumption, which reduces inflationary pressures.

Categories: Economy, Politics, Brazil.

Top Comments

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  • Marti Llazo

    12 month inflation in Brazil, 8.75 percent and above target

    12 month inflation in Argentina, 46 percent and right on target

    Aug 15th, 2016 - 03:15 pm 0
  • ChrisR

    @ 1

    Wonderful legacy that, TMBOA will be so proud! :o(

    Aug 16th, 2016 - 01:30 pm 0
  • Jack Bauer

    12 month inflation in Brazil is still off target, but dropping....but have noticed that the food sector is having a field day - while the USD value against the Real has fallen almost 25 % in the last three months, prices in supermarkets are shooting up 10-20% per month. While the fat cow was in power, they had an excuse, but now ?? It's about time the public boycotted the greedy bastards.

    Aug 19th, 2016 - 12:52 am 0
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