October 12, 2023
Less than anticipated growth in Brazilian inflation Brazil’s annual inflation rate rose to 5.19% in September 2023 from 4.61% the previous month, which was the highest level in seven months but fell short of market expectations of 5.27%. The outcome increased the deviation from the 3.25 percent objective set by the Brazilian government, supporting some predictions that the central bank’s current round of rate cuts may be milder than anticipated. Transportation-related consumer prices increased significantly (7.7% vs. 4.1% in August), primarily as a result of high fuel prices (13.42% vs. 1.05%), a recent rise in crude oil prices globally, and increased costs of ethanol in Brazil’s main sources. On the other hand, inflation continued to slow for food (0.88% vs 1.08%), amid reports of strong agricultural harvests, and housing and utilities (5.28% vs 5.42%). On a monthly basis, consumer prices edged 0.26% higher.
Source: Trading Economics
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