Brazil Inflation Rate Slows to 16-Month Low in September


The annual inflation rate in Brazil dropped to 2.89 percent in September 2019 from 3.43 percent in August and below market forecasts of 2.97 percent. It was the lowest inflation rate since May last year, amid a slowdown in cost of food & non-alcoholic beverages, transport and housing.

Year-on-year, prices eased for food & non-alcoholic beverages (3.56 percent compared to 4.12 percent in August); transport (0.87 percent compared to 2.57 percent); housing (3.91 percent compared to 4.27 percent), namely rents (4.79  percent compared to 4.85 percent) and electricity (4.48 percent compared to 4.96 percent); personal expenses (3.17 percent compared to 3.52 percent); household goods (2.39 percent compared to  3.28 percent); and education (4.74 percent compared to 4.95 percent).

In contrast, cost advanced further for clothing (0.8 percent compared to 0.51 percent); health (4.2 percent compared to 3.88 percent); and communication (0.39 percent compared to 0.33 percent).

On a monthly basis, consumer prices declined 0.04 percent, after rising 0.11 percent in the prior month and below expectations of a 0.03 percent gain. Cost of food & non-alcoholic beverages went down 0.43 percent, faster than a 0.35 percent fall in August, of which tomatoes (-16.17 percent), english potato (-8.42 percent), onions (-9.89 percent) and fruits (-1.79 percent). Additionally, prices dropped for household goods (-0.76 percent compared to 0.56 percent), in particular appliances & equipment (-2.26 percent) and TV, sound & computer items (-0.9 percent); and communication (-0.01 percent compared to 0.09 percent). Also, cost slowed for housing (0.02 percent compared to 1.19 percent); personal expenses (0.04 percent compared to 0.31 percent); and education (0.04 percent compared to 0.31 percent).

Brazil Inflation Rate Slows to 16-Month Low in September


IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com
10/9/2019 12:19:59 PM