Brazil posted monthly inflation of 0.32% in February, up slightly from 0.29% in January, but the nation’s 12-month inflation rate remained firmly below the 3.0% mark at just 2.84%, the Brazilian Census Bureau (IBGE) said Friday. The 12-month rate as of January was 2.86%. Brazil is committed to inflation in 2017 within a range of 3.0% to 6.0%. Inflation was led in February by a 3.9% hike in school fees, with other services also rising. Annual school fee hikes tend to occur in January and February, with fees remaining stable the rest of the year. Fuel costs also rose in February, but food prices declined in absolute terms. Tame inflation could persuade the Brazilian Central Bank to continue its policy of interest rate cuts, according to economists. Cuts would tend to accelerate Brazil’s economic recovery without pushing inflation much higher than the 3.0% floor for this year.
Link to government news agency releaseMore Testimonials