Brazil’s monthly inflation preview slows as airfares and electricity fall
Brazil’s IPCA-15 consumer-price index rose 0.32 per cent in October, slowing from 0.70 per cent in September. Cheaper airfares and residential electricity tempered the increase, while food prices rose. The twelve-month rate nevertheless climbed to 4.62 per cent. The preview uses a different collection period from the main index used for the central bank’s inflation target. The October main index is scheduled for November 12.
Economics & Markets··Morning
Monthly price growth slows to 0.32 per cent
Brazil’s October IPCA-15 consumer-price index rose 0.32 per cent from the previous month, slowing from September’s 0.70 per cent. The preliminary inflation measure is compiled by the Brazilian Institute of Geography and Statistics, known as IBGE.[1], [2]
The result was below the median forecast of 0.45 per cent. Twelve-month inflation nevertheless increased from 4.47 per cent to 4.62 per cent: this October’s monthly rise replaced a smaller 0.18 per cent increase a year earlier. Prices were 4.15 per cent higher than at the beginning of the year.[1]
Cheaper flights and electricity offset rising food prices
Airfares fell 9.24 per cent and residential electricity declined 0.89 per cent, subtracting 0.08 and 0.04 percentage points respectively from the index. Food and beverages rose 0.88 per cent, adding 0.19 percentage point, the largest upward contribution among the broad groups. Food consumed at home increased 1.01 per cent, while food away from home rose 0.56 per cent. Housing was the only one of nine groups to decline.[1]
The main October index is scheduled for November 12
Prices for the preview were collected from September 16 to October 14. The main IPCA index used for the central bank’s inflation target collects prices over a period more concentrated in the reference month. Its October release is scheduled for November 12, so the preview and the main index cover different collection periods.[1]
