MercoPress. South Atlantic News Agency

Brazilian inflation down in January, but 12-month still off target

Several items such as with transport and clothing experienced deflation

The Brazilian official inflation rate was 0.55% in January, lower than December 2013’s 0.92% and January 2013’s 0.86%. Over the last 12 month-period, the Extended Consumer Price Index (IPCA) stands at 5.59%, from February 2013 to January 2014.

 Brazil's Central Bank’s annual inflation target is 4.5%, with a two percentage points variation on either side.

According to figures released on Friday the decline in inflation seen in January was due to 0.03% deflation in transportation expenditures, 15.88% deflation in air ticket prices, and 0.15% deflation in clothing expenditures.

As for the item food, prices of tomato, long-life milk, mulatinho beans, and black beans also dropped in January from December. However, inflation in food prices as a whole stood at 0.84% in January and at 0.89% in December 2013.

On a monthly basis, consumer prices advanced 0.55% in January, after growing 0.92% in December.