Brazil's consumer prices went up 0.19 percent from a month earlier in July 2019, after rising 0.01 percent in the previous month but lower than market consensus of a 0.24 percent increase. Main upward pressure came from housing (1.20 percent vs 0.07 percent), essentially electricity (4.48 percent vs -1.11 percent), due to the change of the tariff flag, which went from green to yellow, indicating that the energy will cost more, as well as the tariff adjustment in São Paulo, with a large weight in the index. Usually, the color of the flag is printed on the electricity bill (red, yellow or green) and indicates the cost of the energy as a function of electricity generation conditions. Other increases were seen mainly for food & non-alcoholic beverages (0.01 percent vs -0.25 percent), mostly fruit (2.51 percent vs -6.14 percent); personal expenses (0.44 percent vs 0.15 percent) and household goods (0.29 percent vs 0.02 percent). Inflation Rate Mom in Brazil averaged 6.42 percent from 1980 until 2019, reaching an all time high of 82.39 percent in March of 1990 and a record low of -0.51 percent in August of 1998.
Inflation Rate Mom in Brazil is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate Mom in Brazil to stand at 0.30 in 12 months time. In the long-term, the Brazil Inflation Rate MoM is projected to trend around 0.20 percent in 2020, according to our econometric models.