Brazil Inflation Rate Picks Up to 4-Month High of 2.86%


Annual inflation rate in Brazil increased to 2.86 percent in May 2018 from 2.76 percent in April, against market expectations of a small decrease to 2.74 percent. It was the highest inflation rate since January, mainly due to rising prices of transport, namely fuels such as gasoline and diesel. Actually, this situation motivated the nationwide truckers’ strike in the final weeks of May.

Year-on-year, prices continued to advance mainly for transport (6.54 percent vs 5.67 percent in April), namely fuels (19.59 percent vs 16.65 percent) such as gasoline (21.48 percent vs 17.95 percent) and diesel (19.78 percent vs 12.47 percent). Meanwhile, inflation slowed for housing (4.11 percent vs 5.46 percent); health (5.72 percent vs 5.78 percent); personal expenses (3.42 percent vs 3.54 percent); clothing and footwear (2.18 percent vs 2.59 percent). Also, cost fell for food and beverages (-1.46 percent vs -2.11 percent) and articles for the residence (-0.37 percent vs -0.54 percent).

On a monthly basis, consumer prices went up 0.4 percent, after a 0.22 percent increase in April and slightly above market consensus of 0.3 percent. The most significant monthly price rises were recorded for: housing (0.83 percent vs 0.17 percent), mainly due to readjustments in electricity (3.53 percent vs 0.99 percent); transport (0.40 percent after being flat in April), due to higher cost of gasoline (3.34 percent vs 0.26 percent) and diesel (6.16 percent vs 1.84 percent); and food and beverages (0.32 percent vs 0.09 percent), for both consumption at home (0.36 percent vs 0.27 percent) and out of home (0.26 percent vs -0.22 percent).

Brazil Inflation Rate Picks Up to 4-Month High of 2.86%


IBGE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
6/8/2018 2:27:37 PM