Loading ...News - Brazil inflation eases unexpectedly in November
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SAO PAULO, Dec 5 (Reuters) - Inflation in Brazil eased unexpectedly in November amid a slowing economy and dwindling consumer confidence, reinforcing the view that the central bank has room to hold interest rates next week for the second straight month.
The benchmark IPCA consumer price index <BRCPI=ECI> rose just 0.36 percent in November, slowing from a 0.45 percent increase in October, the government’s statistics agency IBGE said on Friday.
The index was expected to rise 0.50 percent last month, according to the median forecast of 25 economists surveyed by Reuters. Estimates ranged from 0.47 percent to 0.55 percent.
Food and beverage prices, which had jumped 0.69 percent in October and have been pressuring inflation all year long, rose 0.61 percent in November.
Clothing prices also rose less last month, climbing 0.71 percent after a 1.27 percent jump in October. Transport costs edged 0.02 percent lower in November, dragged down by plummeting used car prices, which fell 2.61 percent.
Personal expenses rose 0.50 percent following a 0.68 percent increase in October as consumers, worried about the slowing economy, sought to rein in spending.
In the 12 months through November, the IPCA rose 5.61 percent compared with a 6.41 percent increase in the year through October, the IBGE said.
Brazil’s central bank, which uses the IPCA as a guide when setting interest rates, has a 4.5 percent annual inflation target for 2008, 2009 and 2010 with a tolerance band of plus or minus 2 percentage points.
The central bank’s monetary policy committee, or Copom, meets on Tuesday and Wednesday to decide on interest rates. It is widely expected to leave its benchmark lending rate unchanged at 13.75 percent a year, a Reuters poll showed on Thursday.
For the IBGE’s November inflation report, please see: here.
Source: Reuters
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