Inflation in Brazil fell one tenth in February

The Consumer Price Index (CPI) of Brazil stood at 5.6 % year-on-year

The Consumer Price Index (CPI) in Brazil stood at 5.6 % year-on-year in February, a drop of more than one tenth compared to the data for January, according to the Brazilian Institute of Geography and Statistics (IBGE).

Thus, Brazilian inflation continues its downward trend, albeit in a very progressive manner. After falling below 7% in October, the index has remained above 5% since last November, with barely a drop of four tenths in the last four months.

For their part, in monthly terms, prices have increased their growth rate compared to January, up to 0.84, three tenths above the previous month, when they increased by 0.53 % per month.

Of the nine groups of products and services investigated, only clothing presented a negative variation, being the second consecutive occasion in which there has been a drop in this division.

Meanwhile, the highest incidence came from the education group (which went from a monthly growth of 0.36 % in January to 6.28 %), followed by far by health and personal care (1.26 %) and communication (0. 98 %). This increase in the education group reflects the adjustments typical of the start of the school year in the country.

Despite the fact that inflation has fallen significantly since mid-2022, the slow disinflationary process of recent months could encourage the Central Bank of Brazil to maintain interest rates at 13.75 %, a figure that is considered high by the Government of Brazil and that has been the cause of controversy in recent weeks. The next monetary policy meeting is scheduled for March 21 and 22.

Source: dpa

(Reference image source: file)

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