Brazilians enjoyed a rare decline in prices in November, with the Brazilian Census Bureau (IBGE) posting deflation of 0.21% for the month. The 12-month rate fell sharply from 4.56% as of October to 4.05% as of November, making it highly likely Brazil will end the year with inflation under the government-set target of 4.5%. Monthly inflation in October was 0.45%. The November figures showed declines in fuel and housing costs with food costs rising slightly. The unexpected decline in prices is likely to persuade the Central Bank to hold interest rates steady in the coming months. The base interest rate is currently at an all-time low of 6.5%. Tame inflation and low interest rates should help sustain Brazil’s current economic recovery, according to economists.
Link to IBGE release