Brazil consumer prices up more than expected in mid-July
2024.07.25 08:49
SAO PAULO (Reuters) – Consumer prices in Brazil rose more than expected in the month to mid-July driven by higher transportation and housing costs, data from statistics agency IBGE showed on Thursday.
Prices as measured by the IPCA-15 index were up 0.30% in the period, IBGE said, slowing from 0.39% in the previous month but overshooting the 0.23% increase forecast by economists polled by Reuters.
Seven out of the nine groups surveyed by IBGE posted price increases in the period, the agency said, with transportation being the biggest influence on the back of higher airfares and fuel costs.
In the 12 months to mid-July, inflation in Latin America’s largest economy stood at 4.45%, up from 4.06% the month before and also exceeding the 4.38% expected by economists in the Reuters poll.
Brazil’s central bank targets inflation at 3%, plus or minus 1.5 percentage points.
The monetary authority last month unanimously halted a rate-cutting cycle, citing higher inflation expectations and fiscal struggles. The next decision is scheduled for July 31 and markets believe the bank will maintain its key rate at 10.50%.
