SÃO PAULO: Brazil’s inflation as measured by its consumer-price index eased in September, reinforcing signs that inflationary pressures across Latin America’s largest nation are moderating and fueling expectations that the central bank may reduce interest rates soon.
The country’s IPCA consumer-price index for September rose 0.08%, compared with a 0.44% increase in August, the Brazilian Institute of Geography and Statistics said Friday. The monthly inflation data came below economists’ expectations, which called for an increase of 0.10% to 0.23%, according to a survey by local news agency Agência Estado.
The rolling 12-month index reached 8.48%, lower than the 8.97% increase through August. That was the lowest level since May 2015, when it reached 8.47%. Despite the slowdown, the figure remains well above the 6.5% increase ceiling set by the central bank. The monthly slowdown came mainly as food costs fell in the period, IBGE said. Food costs dropped 0.29% in the period, compared with a rise of 0.30% in the prior month.
