The official data on inflation in Brazil, as measured by the Broad Consumer Price Index-15 (IPCA-15), accelerated to 0.35% in December, from 0.32% in November, but closed the year at 2.94% in the last 12 months – the lowest level since 1998 (+1.66%), said the country’s statistics office. Both on a monthly and on a yearly basis, the results were below the median of the expectations, of +0.36% and +2.94%, respectively.
In the year, the Food and Beverage group made the biggest contribution to the deceleration of inflation, with a drop of 2.15%, followed by the Articles of Residence group (-1.51%). Meanwhile, the Education (+6.96%), Health and Personal Care (+6.68%) and Housing (+6.15%) groups advanced the most, followed by the Personal Expenses group (+4.75%), Transportation (+4.31%), Clothing (+2.55%), and Communication (+1.5%).
On a monthly basis, the acceleration in the rate was driven by the Transportation (+ 1.16%) and Housing (+ 0.43%) groups, with an impact of 0.21 percentage point and 0.07 pp in the result, respectively. According to the IBGE, the increase of 2.75% in the price of gasoline between November and December was one of the factors that contributed most to the increase in the previous inflation data.
The material has been provided by InstaForex Company – www.instaforex.com
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