Brazil: Inflation drops to lowest level since August 2017 in October
Consumer prices rose 0.10% in October over the previous month, contrasting September’s 0.04%. The result marked the lowest reading recorded for the month of October since 1998, although was slightly above market expectations of a 0.07% increase. A mild rebound in prices for food and beverages, and transport drove the reading, while housing prices dropped notably.
Inflation fell to 2.5% in October, down from September’s 2.9% and marking the lowest reading since August 2017. Inflation lies far below the Central Bank’s target of 4.25% for the end of 2019. That said, inflation should rise by the end of the year amid higher food price pressures and electricity price hikes.
Accordingly, annual average inflation, fell to 3.8% in October from September’s 3.9%.