Inflation in Brazil registers advance of 0.54 %

The National Consumer Price Index of Brazil registered an advance of 0.54 % in January, the greatest variation for this month since 2016 and more than double the data registered at the same month of 2021, as published by the Brazilian Institute of Geography and Statistics (IBGE).

With the new data, the inflation of the largest economy in Latin America continues to expand and is situated at a year-on-year level of 10.38 %, greater than 10.06 % observed in the 12 months immediately preceding. However, the monthly annulment of January is 0.2 points lower than that registered in December 2021.

At its last monetary policy meeting, the Monetary Policy Committee of the Central Bank of Brazil warned that inflation could be maintained above the target range of 3.5 % during this year with a point and a means of upward tolerance and to the Low and reach a level of 5.4 %.

In this scenario, the Central Bank assumes a trajectory of interest rates that would reach up to 12 % in the first half of 2022, it would end the year at 11.75 % and would be reduced by 8 % by 2023.

The new rise in prices during January is explained because eight of the new groups of goods and services analyzed presented price increases. In inter-monthly terms, the greater variation occurred in household item (1.82 %), which accelerated compared to December (1.37 %). This group followed food and beverages (1.11 %), which in turn had the highest incidence in the index during the month, with 0.23 points; Costume (1.07 %) and Communication (1.05 %).

Source: dpa