UPDATE 1-Brazil's monthly inflation eases in mid-August

viernes 21 de agosto de 2015 08:21 GYT
 

(Adds table, background, data)
    SAO PAULO, Aug 21 (Reuters) - Brazil's monthly inflation
rate eased in the month to mid-August as the economy moved
deeper into what is expected to be its worst recession in 25
years. 
    Brazil's IPCA-15 consumer price index rose 0.43
percent in the month to mid-August as expected by economists in
a Reuters poll, slowing from 0.59 percent in the previous month,
government statistics agency IBGE said on Friday.
    Trailing 12-month inflation remained high at 9.57 percent,
up from 9.25 percent a month earlier and more than double the
official 4.5 percent target.
    But the decline in the monthly inflation rate, led by a
smaller increase in food prices and lower transportation prices,
underpinned hopes that Brazil's inflation could finally peak
after a steep surge that began late last year.
    That would be a relief to Brazil's central bank, which is
also grappling with a 7.5 percent unemployment rate, the highest
in over five years. The bank raised interest
rates to 14.25 percent last month, a nine-year high, in a bid to
tame inflation expectations for 2016.
    Electricity prices continued to rise sharply in the month to
mid-August, climbing 2.6 percent from the previous month. Water
and sewage rates rose 1.39 percent, IBGE said.
    Inflation in Latin America's largest economy spiked after
President Dilma Rousseff hiked utility rates and other
government-set prices following her re-election. 
    Hundreds of thousands of demonstrators returned to the
streets in dozens of Brazilian cities on Aug. 16 to call for her
impeachment, blaming her for a vast corruption scandal and the
economy's worst slump in a quarter century. 
        
    Below is the result for each price category:    

                                            Aug         July
 - Food and beverages                      0.45         0.64
 - Housing                                 1.02         1.15
 - Household articles                      0.73         0.47
 - Apparel                                 0.01        -0.06
 - Transport                              -0.46         0.14
 - Health and personal care                0.83         0.80
 - Personal expenses                       0.73         0.83
 - Education                               0.78         0.10
 - Communication                           0.11         0.59
                                                            
 - IPCA-15                                 0.43         0.59
 
    


 (Reporting by Asher Levine Editing by; W Simon)