RIO DE JANEIRO--Inflation in Brazil picked up as expected in August in the first signs that the depreciation of the real versus the U.S. dollar is hitting prices in Latin America's largest economy.
Brazil's IPCA consumer-price index rose 0.24% in August from July, the Brazilian Institute of Geography and Statistics, or IBGE, said Friday.
Economists had expected a rise of 0.25%. In a positive sign, Brazil's rolling 12-month inflation reading continued to retreat, falling to 6.09% in August--the lowest since registering 5.84% at the end of 2012.
Economists had expected 6.10%. Inflation is expected to end 2013 at 5.83%, according to the latest central bank survey of economists.
Price pressures have forced the Brazilian Central Bank to raise interest rates dramatically this year, including a half-point bump last week that brought the country's benchmark rate to 9%. In the minutes from that decision, the bank reiterated its concerns about the impact of a weaker currency on inflation and said it would stay vigilant in the fight against rising prices.
The real has tumbled in value against the U.S. dollar amid expectations the Federal Reserve will soon wind down its stimulus measures. The minutes reinforced expectations that the bank will continue to raise interest rates at its October meeting.
Higher interest rates, however, have raised concerns about already weak economic growth. Brazil's economy expanded by a stronger-than-expected 1.5% in the second quarter from the first quarter, but many economists expect the expansion to falter in the second half of the year.
Brazil's expected to grow 2.3% in 2013, up from a meager 0.9% expansion in 2012 but well below the 3.5% advance the government had expected.
Clothing, health care and home furnishings showed the biggest price gains in August, the IBGE said. Food and drink prices were stable in August from July, while transportation prices declined at a softer pace, the IBGE said.
nasdaq.com
Brazil's IPCA consumer-price index rose 0.24% in August from July, the Brazilian Institute of Geography and Statistics, or IBGE, said Friday.
Economists had expected a rise of 0.25%. In a positive sign, Brazil's rolling 12-month inflation reading continued to retreat, falling to 6.09% in August--the lowest since registering 5.84% at the end of 2012.
Economists had expected 6.10%. Inflation is expected to end 2013 at 5.83%, according to the latest central bank survey of economists.
Price pressures have forced the Brazilian Central Bank to raise interest rates dramatically this year, including a half-point bump last week that brought the country's benchmark rate to 9%. In the minutes from that decision, the bank reiterated its concerns about the impact of a weaker currency on inflation and said it would stay vigilant in the fight against rising prices.
The real has tumbled in value against the U.S. dollar amid expectations the Federal Reserve will soon wind down its stimulus measures. The minutes reinforced expectations that the bank will continue to raise interest rates at its October meeting.
Higher interest rates, however, have raised concerns about already weak economic growth. Brazil's economy expanded by a stronger-than-expected 1.5% in the second quarter from the first quarter, but many economists expect the expansion to falter in the second half of the year.
Brazil's expected to grow 2.3% in 2013, up from a meager 0.9% expansion in 2012 but well below the 3.5% advance the government had expected.
Clothing, health care and home furnishings showed the biggest price gains in August, the IBGE said. Food and drink prices were stable in August from July, while transportation prices declined at a softer pace, the IBGE said.
nasdaq.com
No comments:
Post a Comment