SÃO PAULO: Brazil’s consumer-price index slowed in February, providing relief for the country’s central bank amid its efforts to curb inflationary pressures. Brazil’s consumer-price index, the IPCA, rose 0.90% in February, compared with an increase of 1.27% in January, the Brazilian Institute of Geography and Statistics, or IBGE, said Wednesday. The monthly inflation data came below economists’ expectations, which called for an increase of 0.92% to 1.12%, according to a survey by local news agency Agência Estado.
The rolling 12-month IPCA was up 10.36% through February, compared with 10.71% through January. Despite the slowdown, the figure remained well above the central bank’s 6.5% ceiling.
The inflation slowdown came mainly on easing food and transportation costs. Food prices rose 1.06% in February, compared with a rise of 2.28% in January. Transportation costs increased 0.62% in the period, versus an increase of 1.77% in January. With annual inflation still well above the target, the central bank is keeping its benchmark Selic interest rate at an elevated level of 14.25%, despite the country’s deep economic recession.
