Thursday , June 30 2022

Brazil records inflation 0.45% in October, the highest for a month in three years AmericaEconomy


Rio de JaneiroBrazil's inflation rate rose 0.45% in October, the highest month-on-month gain since 2015, driven by rising fuel and food prices, the Brazilian Institute of Geography and Statistics (IBGE)

According to the IBGE, growth in October was slightly lower than in September (0.48%).

In the cumulative year, inflation in Brazil is 3.81%, which is more than 2.21% recorded in the first 10 months of last year.

In the last 12 months to October, the index was 4.56%, which exceeded 4.53% in the immediately preceding 12 months.

It also exceeded the target set by the Central Bank (BC), which is 4.5%, although it remains within the tolerance band between 3% and 6%.

IBGE stressed that, in spite of the October increase, the rate remains within the government's target, so the target set at the end of the year "will depend on the movement of food and fuel."

Food and drink prices increased by 0.59% in October compared to September, while transport prices increased by 0.92%.

"Together, these two groups account for 43% of household spending and contribute about 70% of the monthly rate," IBGE said.

The financial market predicts that inflation in Brazil this year will be 4.4% below the government target of 4.5%.

In 2017, Brazil recorded inflation of 2.95%, the lowest since 1998, and the first time the government was under the government's target, as well as its tolerance limit of 3%.

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