Brazil Annual Inflation Rate at 3-Month High in February


The annual inflation rate in Brazil rose to 3.89 percent in February of 2019 from 3.78 percent in the previous month. Prices increased further mostly due to higher cost of food and non-alcoholic beverages.

Year-on-year, inflation rose for food and non-alcoholic beverages (5.37 percent from 4.21 percent in January); housing (6.04 percent from 5.87 percent), namely electricity (15.47 percent from 13.96 percent); personal expenses (3.40 percent from 3.38 percent); household goods (4.11 percent from 3.93 percent); health (3.90 percent from 3.79 percent); and clothing and footwear (0.48 percent from 0.43 percent). Meanwhile, prices slowed for transport (1.97 percent from 3.07 percent), mainly due to fuels (-0.59 percent from 1.33 percent); and education (4.85 percent from 5.22 percent). Also, cost of communication fell at a faster pace (-0.29 percent from -0.15 percent). 

On a monthly basis, consumer prices went up 0.43 percent, after increasing 0.32 percent in the prior month and above market expectations of a 0.2 percent gain. Main upwardly pressure came from education (3.53 percent from 0.12 percent in January), reflecting the readjustments practiced at the beginning of the school year, mainly monthly fees of the regular courses; housing (0.38 percent from 0.24 percent), namely electricity (1.14 percent); and health (0.49 percent from 0.26 percent). On the other hand, cost of food and non-alcoholic beverages eased (0.78 percent from 0.9 percent), namely beans (51.58 percent), potatoes (25.21 percent), vegetables (12.13 percent) and milk (2.41 percent) and prices of transport dropped (-0.34 percent from 0.02 percent), driven by air tickets (-16.65 percent) and gasoline (-1.26 percent).

Brazil Annual Inflation Rate at 3-Month High in February


IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com
3/12/2019 12:32:33 PM