Consumer inflation, measured by the benchmark IPCA index, ended 2018 at 3.75 percent. This was in line with analysts’ expectations and was within the target band of 3 to 6 percent, after missing it in 2017. The result indicates that price dynamics in Brazil are finally returning to what can be considered “normal” by most economists.
Over the past couple of years, the IPCA faced sharp variations and a period of tolerance with higher price increases from the mid-2000s to the early 2010s as part of a strategy to boost the economy via a heated consumption market.
This year’s increment is higher than the 2.95 percent recorded in 2017 and was mostly influenced by prices related to Housing (up 4.72 percent), Transportation (4.19 percent) and Food and Beverages (4.04 percent). These three groups, of a total of nine, were responsible for two-thirds of the increase, according to data published this Friday (11) by national statistics agency IBGE.