Brazil’s inflation rate experienced a surge in the 12-month period leading up to mid-October, mainly driven by a significant increase in air travel prices compared to the previous month.
According to the Institute of Geography and Statistics (IBGE) of Brazil, consumer prices saw a rise of 0.21% from September 16 to October 15, with a year-on-year increase of 5.05%. In the month leading up to mid-September, consumer prices increased by 0.35%, and over the 12-month period, there was a rise of 5.0%.
Transportation prices witnessed a growth of 0.78% in the month leading up to mid-October, following a 2.02% increase in the previous month. The notable increase in air travel costs, which is a part of the transportation component, was particularly significant at a staggering 23.75% within the same month. Meanwhile, food prices experienced a decline of 0.31% during the month, marking the fifth consecutive decrease, although at a slower pace than the 0.77% decline in September.
The IPCA 15, which serves as the mid-month consumer price measurement, is one of several inflation indices generated in Brazil. On the other hand, the IPCA, the primary inflation reference for the Central Bank of Brazil, measures an entire calendar month.
Based on the central bank’s weekly survey of economists, it is anticipated that the IPCA will reach 4.65% by the end of this year.
