UPDATE 1-Brazil's inflation shoots above target in mid-September

viernes 19 de septiembre de 2014 08:38 GYT
 

(Adds table, details on meat prices, background on elections)
    By Silvio Cascione
    BRASILIA, Sept 19 (Reuters) - Brazil's annual inflation rate
surpassed the government's target range in mid-September as meat
prices rose sharply, giving ammunition to opposition candidates
in the run-up to the October presidential elections.
    Consumer prices rose 6.62 percent in the 12
months to mid-September, above the 6.5 percent ceiling of the
central bank's target, statistics agency IBGE said on Friday.
    The IPCA-15 inflation index rose 0.39 percent
in the month to mid-September, up from 0.14 percent in the
previous month and above market expectations, IBGE added. 
    Meat prices increased 2.3 percent as Russia's recent ban on
many Western food products spared Brazil and raised prospects of
stronger exports of beef, chicken and pork from the Latin
American country. 
    Airfares also drove inflation up, rising 17.6 percent from
mid-August.
    Inflation has been a major campaign theme in Brazil's
presidential election. Recent polls show opposition candidate
Marina Silva running neck and neck with incumbent President
Dilma Rousseff in a potential runoff, which would be triggered
if no candidate wins a majority of votes on Oct. 5.
    Price increases have also hurt consumer and business
confidence over the past few years, weighing on economic growth.
Until inflation starts to ease, which could still take many
months, the central bank is unlikely to stimulate growth by
lowering interest rates, economists say.       
    Below is the result for each price category:    

                               September    August
 - Food and beverages               0.28     -0.32
 - Housing                          0.72      1.44
 - Household articles               0.43      0.41
 - Apparel                          0.17     -0.18
 - Transport                        0.45      0.20
 - Health and personal care         0.30      0.55
 - Personal expenses                0.31     -0.67
 - Education                        0.20      0.42
 - Communication                    0.56     -0.84
                                                  
 - IPCA-15                          0.39      0.14
  

 (Reporting by Silvio Cascione; Editing by Lisa Von Ahn)