BRAZIL: Annual CPI Accelerates To 2.54%, Back To Inflation Target Range

(RTTNews) - The 12-month inflation rate in Brazil came in at 2.54% in September, accelerating when compared to the 2.46% annual rate recorded in August, and above economists projections (+2.47%), said the country's statistics office. Brazilian CPI is now at the bottom of the country's central bank inflation target range, between 2.5% and 6.5% per year.

In a monthly comparison, the Brazilian consumer price index rose 0.16% in September, decelerating when compared to the 0.19% rate posted in August, according to the Brazilian statistics office. Analysts expected a 0.09% growth.

The inflation reading reflects the decline in food and beverage (-0.41%) and housing (-0.12%) prices in September compared to August, which offset the 0.79% increase in transport prices after the government's decision to double a tax on fuels. As other groups had small price gains, the inflation rate remained constrained.

Year-to-date, Brazil's official inflation is running at 1.78%, the lowest result for the period since 1998, when it rose by 1.42%. In the third quarter of 2017, prices increased by 0.59%.