Brazil inflation falls to 2.89%, lowest since May last year

0
9

Brazil inflation falls to 2.89%, lowest since May last year

BRASILIA (Reuters) – Brazilian consumer price inflation fell to its lowest in more than a year in September, official figures on Wednesday showed, a reading below the central bank’s target that is likely to strengthen expectations of another cut in .

The benchmark IPCA index of inflation rose 2.89% in the 12 months through September, down from an increase of 3.43% in the previous month, government statistics agency IBGE said on Wednesday.

This was below the median consensus forecast of 2.97% in a Reuters poll of economists and marked the first time since May last year that the annual rate of inflation has been below 3.0%.

Article continues below Advertisement...

The central bank’s official year-end goal for 2019 remains 4.25%, a target most economists think will be undershot. In the first nine months of the year, the annual rate of inflation was running at 2.49%, IBGE said.

On a monthly basis, prices fell in September for the first time this year, slipping 0.04%. This is only the fourth month of consumer price deflation in the last five years, IBGE figures show.

The biggest weight in September’s data was a 0.43% month-on-month fall in food and drink prices, IBGE said, followed by a 0.76% decline in the of household goods. Communications was the only other category that saw a fall in prices, albeit a slender 0.01%.

Of the remaining six categories, the biggest driver was a 0.58% increase in the cost of health and personal care items, IBGE said.

Citing low inflation, Brazil’s central bank reduced benchmark borrowing costs last month to a new low of 5.50%. Economists widely expect it to cut again later this year.

Disclaimer: Fusion would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here