Brazil IPCA-15 Inflation Rises 0.32% Below Market Forecasts

The Brazilian Institute of Geography and Statistics reported that the IPCA-15 consumer price index rose 0.32% in the month ending mid-October. This figure represents a deceleration from the 0.70% increase recorded in the previous month and fell below the 0.43% rise predicted by economists. Over the 12 months leading to mid-October, prices increased by 4.62%, also trailing the forecast of 4.73%.

Food and beverage prices drove the monthly increase with a 0.88% rise, while personal expenses climbed 0.55%. Conversely, housing costs decreased by 0.1%. These economic indicators emerge as Brazil prepares for a presidential runoff between incumbent Luiz Inacio Lula da Silva and right-wing Senator Flavio Bolsonaro.

The Central Bank of Brazil is scheduled to meet on November 3-4 to discuss monetary policy. The bank recently cut interest rates to 13.75% and maintains an inflation target of 3%, with a tolerance range of 1.5 percentage points.