Brazil Inflation Rate at 6-Month Low



Consumer prices in Brazil increased 2.68 percent year-on-year in March of 2018, below 2.84 percent in February and compared to market expectations of 2.71 percent. It is the lowest inflation rate since September, remaining below the central bank target of 4.5 percent ± 1.5 p.p. Considering the first three months of 2018, the cumulative inflation was 0.7 percent, the lowest since the real was implemented in 1994.

Year-on-year, prices decreased for food and non-alcoholic beverages (-1.63 percent) and articles for the residence (-1.03 percent). Increases were seen mostly in prices of transport (5.6 percent), housing (4.13 percent), health care (5.88 percent) and personal expenses (3.51 percent).

On a monthly basis, prices rose a meager 0.09 percent, below 0.32 percent in February and expectations of 0.12 percent. The biggest downward pressure came from transport cost (-0.25 percent compared to +0.74 percent in February), mainly due to a 15.42 percent slump in airline tickets. Communication prices declined 0.33 percent, following a 0.05 percent gain. On the other hand, the biggest upward impact came from health and personal care (prices up 0.48 percent after a 0.38 percent rise), mainly due to health insurance (1.06 percent). Housing cost increased 0.19 percent, slightly below 0.22 percent in February.

Brazil Inflation Rate at 6-Month Low


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
4/10/2018 12:53:51 PM