Inflation in Brazil was 0.41% in November. The IPCA (National Broad Consumer Price Index) slowed down in relation to October when it was 0.59%.
The IBGE (Brazilian Institute of Geography and Statistics) released the result on Friday (Dec. 9).
The result surprised the financial market, which estimated a rate close to 0.54% for the month.
The price index accumulates a high of 5.13% in the year. In 12 months, it decreased from 6.47% in October to 5.90% in November.
The percentage is above the inflation target the CMN (National Monetary Council) set of 3.5%.
The tolerance interval is 2% to 5%. It is 0.90 percentage points above the ceiling.
If the year ends above this level, the president of the Central Bank, Roberto Campos Neto, will have to send a public letter explaining the reason for non-compliance.
ccording to the law that authorized the Central Bank’s autonomy, the monetary authority’s central duty is to ensure the population’s purchasing power.
Campos Neto has already had to explain in 2021 when inflation reached 10.06%, and the target was 3.75%.
The president of the Central Bank justified that oil and energy put pressure on the price index.
The financial market projects that inflation in 2022 will be 5.92%. The November result released by IBGE should lower the estimates.
NOVEMBER INFLATION
Seven registered price hikes in November of the nine groups surveyed by the IBGE. The greatest impact came from Transportation (+0.83%) and Food and beverages (+0.53%).
Fuel prices rose 3.29% in November, especially ethanol (+7.57%), gasoline (+2.99%), and diesel (+0.11%).
The cost of foodstuffs at home rose 0.58%, with onions (+23.02%), tomatoes (+15.71%), fruits (+2.91%), and rice (+1.46%) climbing the most.
On the other hand, long-life milk fell by 7.09%. Prices for chicken cuts (-1.75%) and cheese (-1.38%) also dropped.
The price of foodstuffs outside the home advanced 0.39% but was below the 0.49% rate registered in October.
The Clothing group advanced 1.1% in November, the 4th consecutive rate to expand above 1%.