Brasilien Verbraucherpreise

Annual inflation rate in Brazil increased to 4.76% in October 2024, the highest value in a year, compared to 4.42% in September and forecasts of 4.72%. Prices accelerated for food and beverages (6.65% vs 5.86%), housing & utilities (6.12% vs 4.58%). Conversely, inflation eased for transportation (2.48% vs 3.22%). Compared to the previous month, the CPI went up 0.56%, the biggest increase since February and roughly in line with expectations. Biggest upward pressure came from cost of housing (1.49%), mostly residential electricity (4.74%) and food and beverages (1.06%), particularly meat (5.81%). Inflation remains significantly above the central bank's 3% target, exceeding the upper tolerance limit of 4.5%. A severe drought has driven up crop and energy prices, while a weaker real, robust economic activity, and expectations of expansionary fiscal policy have also contributed to rising inflationary pressures. In response, the central bank has already implemented two rate hikes this year.