UPDATE 1-Brazil inflation returns to government target range in mid-November

miércoles 19 de noviembre de 2014 07:28 GYT

(Adds breakdown of price rises, target range context)
    BRASILIA, Nov 19 (Reuters) - Brazil's annual inflation rate
eased more than expected in mid-November, falling back within
the official target range despite a recent increase in fuel
    Consumer prices rose 6.42 percent in the 12 months through
mid-November, statistics agency IBGE said on
Wednesday. Market consensus in a Reuters poll was for an
increase of 6.54 percent.
    The top end of the government's target range is 6.5 percent.
    When compared to mid-October, prices rose 0.38 percent
, down from 0.48 percent in the previous month,
according to the IPCA-15 price index.
    A sharp drop in airfares and interstate bus fares offset a
government-sponsored increase in fuel prices by Petroleo
Brasileiro SA, which economists expected would keep
inflation above the target. Transportation prices rose 0.20
percent in mid-November, easing from 0.25 percent in
    Food prices also reduced their pace of increase in the month
to  mid-November, helping slow inflation, despite another steep
increase in beef prices due to increasing demand from Russia and
    Brazil's inflation rate had been climbing this year partly
because of a sharp increase in government spending.
    The central bank, at risk of seeing inflation breach its 
year-end target range for the first time in a decade, is
expected to raise interest rates through this year and next from
the current 11.25 percent, which could extend the
current economic recession.
    Central bank director Carlos Hamilton Araujo on Tuesday said
inflation is "elevated" and could prompt policymakers to
"recalibrate" monetary policy in coming months. 
    Below is the result for each price category:    

 November                          October     November
 - Food and beverages                 0.69         0.56
 - Housing                            0.80         0.56
 - Household articles                 0.13         0.31
 - Apparel                            0.70         0.42
 - Transport                          0.25         0.20
 - Health and personal care           0.37         0.36
 - Personal expenses                  0.40         0.37
 - Education                          0.08         0.18
 - Communication                      0.00        -0.21
 - IPCA-15                            0.48         0.38

 (Reporting by Silvio Cascione Editing by W Simon)