UPDATE 1-Brazil annual inflation rate tops 10 pct in mid-November

jueves 19 de noviembre de 2015 08:27 GYT

(Adds data, market reaction)
    By Silvio Cascione
    BRASILIA, Nov 19 (Reuters) - Brazil's annual inflation rate
climbed past 10 percent in mid-November, hitting a 12-year high,
despite the central bank's bid to curb price rises by raising
interest rates to double-digit levels.
    Brazil's IPCA-15 consumer price index rose to
10.28 percent in the 12 months through mid-November, up from
9.77 percent in mid-October and in line with forecasts.
    Consumer prices rose 0.85 percent from mid-October, up from
an increase of 0.66 percent in the previous month.
    It is the first time since November 2003 that Brazil's
inflation surpasses 10 percent, a milestone that could add to
pressure on President Dilma Rousseff as the economy sinks into
recession and unemployment rises to the highest in
more than six years. 
    Brazilians are particularly wary of price rises after
several bouts of hyperinflation in the past century.
    Although the current spike in inflation remains milder than
previous bouts, it has been accompanied by the worst recession
in decades, with an expected economic contraction of more than 3
percent this year and hundreds of thousands of lost jobs.
    Fuel prices led inflation higher in mid-November after
cash-strapped state oil firm Petroleo Brasileiro SA 
raised gasoline and diesel prices to help service its massive
    The increase followed a sharp decline in Brazil's currency
 this year, which analysts say is likely to lift prices of
imports even as the economy plunges deeper into recession.
    Food prices and telephone rates also picked up steam in
mid-November, government statistics agency IBGE said on
    Inflation is set to end this year at 10.04 percent,
according to a weekly central bank survey on Monday, falling
next year to 6.5 percent. The central bank has held interest
rates at 14.25 percent, a nine-year high, and is
not expected to cut rates until late 2016.
    Yields on interest rate futures dropped slightly on Thursday
<0#2DIJ:> despite the inflation spike, tracking
global markets after the Federal Reserve pointed to a mild rate
increase cycle. 
    Below is the result for each price category:    

                               mid-November   mid-October
 - Food and beverages                  1.05          0.62
 - Housing                             0.74          1.15
 - Household articles                  0.07          0.12
 - Apparel                             0.72          0.58
 - Transport                           1.45          0.80
 - Health and personal care            0.66          0.55
 - Personal expenses                   0.37          0.56
 - Education                           0.03          0.17
 - Communication                       1.04          0.08
 - IPCA-15                             0.85          0.66
 (Reporting by Silvio Cascione; Editing by Angus MacSwan and W