Food, housing and transportation prices accelerate January inflation in Brazil

Monday, February 9th 2015 - 17:34 UTC

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The rolling 12-month IPCA was up 7.14% through January, up from 6.41% in December, and is now above the central bank's 6.5% ceiling.

Brazil's consumer price inflation accelerated in January, putting the 12-month rate well above the central bank's tolerance band and at the highest level since September 2011, underscoring one of the main challenges facing Latin America's largest economy in the year ahead.

Brazil's consumer price index, the IPCA, rose 1.24% in January, compared with a rise of 0.78% in December, the Brazilian Institute of Geography and Statistics, or IBGE, said Friday.

The rolling 12-month IPCA was up 7.14% through January, up from 6.41% in December, and is now above the central bank's 6.5% ceiling. The 12-month figure marked the highest level since September 2011, when it reached 7.31%.

Despite the increase, the monthly inflation data was in line with the expectations of economists surveyed by Agencia Estado newswire, who saw an increase of between 1.10% and 1.35%.

The index rose mostly because of the increase in food, housing and transportation costs, which increased 1.48%, 2.42% and 1.83%, respectively, in January versus December.

The central bank raised its benchmark interest rate half a percentage point, to 12.25%, at its monetary policy meeting in January. The monetary authority faces a paradox, with inflationary pressures and low growth rates, with economists saying it is explained by the low unemployment rate.

Categories: Economy, Brazil.

Tags: Brazil, Brazil economy, Brazilean inflation.

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Tik Tok
Very sad such mismanagement, hopefully the perpetrators will get what they deserve.
Feb 10th, 2015 - 02:48 am 0
ChrisR
@ 1 Tik Tok

And pigs might fly!

I used to think that Brazil was going to be the shining light in SA. It looks like somebody blew the match out before the torch could be lit.
Feb 10th, 2015 - 10:28 am 0
Conqueror
Glad to hear Brazil is failing. I think the word is 'hubris'. Thinking it could do better than Britain. Does it have anything to do with not being able to collect money from debtors because they are DEAD?

It's good to see that reality is coming home. Once Dilbert has been charged and convicted for corruption, Lulu will be next. Always thought he should be serving 40 years hard labour. Same for Dilly of course.
Feb 10th, 2015 - 06:07 pm 0

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