Brazil’s Inflation Quickens More Than Forecast in December

“Brazil’s inflation quickened more than analysts expected in the month through mid-December as food and service prices continued to rise even amid slower growth.

Prices as measured by the IPCA-15 price index rose 0.69 percent from Nov. 14 through Dec. 1, the fastest pace in 19 months, the national statistics agency said today. The median estimatefrom 41 analysts surveyed by Bloomberg was for a 0.64 percent increase. Annual inflation quickened to 5.78 percent compared with the 4.5 percent mid-point of the central bank’s target.

Policy makers have cut Brazil’s benchmark lending rate by 525 basis points since August 2011, more than any other Group of 20 nation, to a record 7.25 percent, and pledged to keep the rate at that level for a “prolonged period.” President Dilma Rousseff’s administration has also lowered sales taxes, eliminated payroll taxes, and reduced reserve requirements to boost economic growth…”

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