Brazil's mid-September inflation climbed to 4.47% as electricity costs rose
Brazil's mid-September consumer prices rose 0.70% after a 0.40% fall in the previous period, taking annual inflation to 4.47%. The monthly reading exceeded the 0.53% Reuters poll median. Housing costs rose 2.07%, chiefly as an Itaipu electricity-bill rebate ended. The annual rate remains within the central bank's target band, while the faster monthly rise follows last week's quarter-point cut in the Selic rate.
Economics & Markets··Midday
September prices reverse August decline
Brazil's IPCA-15, the country's advance consumer-price reading, rose 0.70% in the month to mid-September after a 0.40% decline in the corresponding August period. The annual rate climbed from 4.24% to 4.47%. The monthly reading also exceeded the 0.53% median in a Reuters poll. The change marks a sharper near-term rise in prices, even though the twelve-month rate remains within the central bank's target band of 3%, plus or minus 1.5 percentage points.[1], [2]
Electricity pushes housing costs higher
Housing costs rose 2.07%, the largest push behind the monthly figure. An Itaipu-related rebate on electricity bills ended, lifting what households paid for power. Food and beverage prices increased 0.4% as well. The electricity change was the main component of the monthly rise, alongside increases in other categories.[1], [2]
The rate cut preceded a firmer price reading
Brazil's central bank cut its Selic policy rate by 25 basis points to 13.75% last week. The mid-September release arrived after that decision and shows annual inflation nearer the upper edge of the bank's target band than its 3% centre. The new monthly and annual readings describe prices through mid-September.[1]
