Brazil’s preliminary inflation accelerates in September

The Extended National Consumer Price Index 15 (IPCA-15) grew by 2.65% y/y in September, compared to 2.28% y/y in August, reflecting higher food prices in the country. The IPCA-15 is a preview of the official inflation index, with the difference being the data collection period, which is carried out from the 16th day in the previous month to the 15th in the current one.

From January to September, the overall index increased by 1.35%, 0.45pp higher than in August, when the preliminary inflation recorded 0.9%, year-to-date. Prices of food and beverages soared by 7.35% in the first nine months of the year, pushed up by cereals, pulses and oilseeds, whose prices jumped by 27%. The weaker Brazilian real prompted some producers to export grains, leading to reduced supply on the domestic market. On the other hand, the government income transfer programmes increased the purchasing power of households, supporting the domestic demand for food.  
 

Further data and analysis on Brazil’s economy could be found on the CEIC Brazil Economy in a Snapshot – Q3 2020 report.