SAO PAULO, May 30 (Reuters) - Brazil's broadest inflation
index rose less than expected in May, adding to signs that
price pressures in Latin America's biggest economy could be
receding after a worrisome advance earlier this year.
The IGP-M index BRIGP=ECI rose 0.43 percent in May,
unexpectedly slowing from a 0.45 percent increase in April, the
Getulio Vargas Foundation research group said on Monday.
The index was expected to rise 0.58 percent, according to
the median forecast of 14 economists polled by Reuters.
Estimates for the increase ranged from 0.49 to 0.72 percent.
Inflation has become a nagging worry in Latin America's
biggest economy, with the 12-month benchmark IPCA index through
April edging just above the central bank's target range of 4.5
percent, plus or minus 2 percentage points at 6.51 percent.
But recent indicators have pointed to an easing of those
pressures, and the country's finance minister, Guido Mantega,
has said that he expects inflation to slow in coming months.
The IGP-M is monitored by analysts and investors as it
gives a broad look at wholesale and consumer prices and allows
investors to watch price trends in the construction industry.
The wholesale component of the index, which accounts for
about 60 percent of the overall IGP-M, rose just 0.03 percent
in May, compared with 0.29 percent the previous month.
The consumer price component, which has a 30 percent
weighting in the index, gained 0.9 percent, compared with a
0.78 percent rise in April.
Increases in the construction costs index, which accounts
for the rest of the index, climbed 2.03 percent in May from
0.75 percent in the previous month.
The IGP-M is published several days before the government's
official inflation data for the same month.
Source: www.reuters.com
index rose less than expected in May, adding to signs that
price pressures in Latin America's biggest economy could be
receding after a worrisome advance earlier this year.
The IGP-M index BRIGP=ECI rose 0.43 percent in May,
unexpectedly slowing from a 0.45 percent increase in April, the
Getulio Vargas Foundation research group said on Monday.
The index was expected to rise 0.58 percent, according to
the median forecast of 14 economists polled by Reuters.
Estimates for the increase ranged from 0.49 to 0.72 percent.
Inflation has become a nagging worry in Latin America's
biggest economy, with the 12-month benchmark IPCA index through
April edging just above the central bank's target range of 4.5
percent, plus or minus 2 percentage points at 6.51 percent.
But recent indicators have pointed to an easing of those
pressures, and the country's finance minister, Guido Mantega,
has said that he expects inflation to slow in coming months.
The IGP-M is monitored by analysts and investors as it
gives a broad look at wholesale and consumer prices and allows
investors to watch price trends in the construction industry.
The wholesale component of the index, which accounts for
about 60 percent of the overall IGP-M, rose just 0.03 percent
in May, compared with 0.29 percent the previous month.
The consumer price component, which has a 30 percent
weighting in the index, gained 0.9 percent, compared with a
0.78 percent rise in April.
Increases in the construction costs index, which accounts
for the rest of the index, climbed 2.03 percent in May from
0.75 percent in the previous month.
The IGP-M is published several days before the government's
official inflation data for the same month.
Source: www.reuters.com
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