Brazil’s November inflation lower than expectations

energy inflation
Utility bills drove inflation up. Photo: Joa Souza/Shutterstock

Brazilian consumer prices measured by the benchmark IPCA index rose 0.95 percent in November. While this was the highest increase for the month in six years, inflation was lower than market forecasts. Per the Central Bank’s Focus Report, analysts expected the rate to hit between 1.03 and 1.07 percent.

Brazil’s 12-month inflation is now at 10.74 percent (the highest since November 2003) and has been in the double digits for the past three months. The November deceleration fueled expectations that the rise in prices has reached its peak, but the Brazilian Institute of Geography and Statistics believes the lower-than-expected result was more linked to heavy Black Friday discounts — which were even slapped on food products.

Meanwhile, utility bills continue being a major force driving prices up. “Besides the ‘water shortage’ tariffs, bills went up in major urban areas such as São Paulo, Brasília, and Goiânia,” said IPCA research manager Pedro Kislanov.