In March, Brazil witnessed its inflation rate decelerate significantly to 0.16%, marking a sharp decline from February’s rate of 0.83%.
This data, released by the IBGE on April 10th, highlights a trend lower than many had predicted.
Analysts expected rates ranging from 0.15% to 0.42%, with a median guess at 0.24%.
This latest figure contributes to a yearly inflation tally of 1.42%. Looking at the last twelve months, the rate stands at 3.93%, which is below the anticipated 4.01%.
Predictions had varied, spanning from 3.81% to 4.51%. These numbers play against a backdrop where the Central Bank of Brazil aims for a 3% inflation rate, with a leeway up to 4.5%.
Surveying nine sectors, the IBGE found six with rising prices in March. Food and Beverages led, climbing by 0.53% and adding 0.11 percentage points to the overall inflation.
Health and Personal Care followed, increasing by 0.43%. Conversely, Transportation prices dropped by 0.33%, pulling the overall rate down. Other sectors showed minor adjustments.
Home food prices rose more modestly in March, at 0.59%, compared to February’s 1.12%.
Highlights include significant jumps in the costs of onions, tomatoes, chicken eggs, fruits, and long-life milk.
Eating out saw its growth rate taper to 0.35%, down from the prior month’s 0.49%.
However, snacks bucked this trend, rising from 0.25% to 0.66%, whereas the cost of meals barely shifted, increasing by just 0.09%.
The Health and Personal Care sector’s increase was mainly fueled by hikes in health insurance and pharmaceuticals, with notable rises in anti-infectives, antibiotics, analgesics, and antipyretics.