MercoPress. South Atlantic News Agency

A blow for Dilma: Brazil's September inflation at its highest in three years

Food prices rose 0.78% after declining for three months in a row. Meat prices rose sharply after Russia stepped up imports of beef, chicken and pork.

Brazil's annual inflation rate in September rose way above the official target to the highest in nearly three years, giving fresh ammunition to opposition candidate Aecio Neves in a run-off vote later this month against President Dilma Rousseff.

Consumer prices rose a faster-than-expected 6.75% in the 12 months through September, the quickest pace since October 2011, data showed on Wednesday.

The central bank targets inflation at 4.5% with a tolerance margin of 2 percentage points.

When compared to August, consumer prices rose 0.57%, up from 0.25% in the prior month.

Food prices rose 0.78% from August after declining for three months in a row. Meat prices rose sharply after Russia stepped up imports of Brazilian beef, chicken and pork.

Stubbornly high inflation has been one of Brazil's biggest economic problems recently, denting consumer and business confidence and complicating potential government efforts to pull the economy out of recession.

Inflation is also a politically sensitive issue in a country traumatized by runaway prices in the past. Although prices remain pretty much under control compared to 20 years ago, inflation eroded Rousseff's popularity ahead of her campaign for re-election.

She faces pro-business candidate Neves in a tightly contested run-off vote on Oct. 26.

Market and government economists expect inflation to subside slightly by the end of the year, but most do not see inflation falling back to the 4.5% target by mid-2016, even after the central bank set interest rates at their highest in over two years, at 11%.