MNI BRIEF: Brazil's October IPCA Inflation Up To 4.76%
MNI (BRASILIA) - Brazil's IPCA inflation measure was 0.56% in October, above the 0.53% consensus and up from 0.44% in September, driven once again by higher energy costs, the Brazilian Institute of Geography and Statistics (IBGE) said Friday.
On an annual basis, prices rose 4.76%, up from 4.42% inflation in September. The consensus was for 4.74%. "In October, the red level 2 tariff was in effect, adding R$7.87 for every 100 kWh consumed, while in September, the red level 1 tariff was in effect, adding approximately BRL4.46," IBGE said. (See MNI BCB WATCH: Hawkish Copom Tone Hints At More 50BP Hikes)
The Central Bank of Brazil decided to hike its official Selic rate by 50 basis points to 11.25% on Wednesday, accelerating the pace of the tightening cycle, while remaining data-dependent regarding further steps. Although a single data point is unlikely to impact the monetary policy path, policymakers are closely monitoring the inflation trajectory.