MNI BRIEF: Brazil's IPCA 4.56% In January As Energy Declines
MNI (BRASILIA) - Brazil's IPCA inflation measure rose 4.56% in January, in line with the 4.58% consensus and down from 4.83% in December. In monthly terms, inflation was 0.16%, down from 0.52% in December and the lowest for January since 1994.
"Residential electricity is part of the Housing group, which recorded a 3.08% drop, impacting January’s IPCA by -0.46 percentage points," IBGE said.
Inflation remains above the upper limit of the Central Bank of Brazil's 3% target range, which allows for a 1.5-percentage-point deviation in either direction.
Last month, the board hiked its Selic rate by 100 basis points to 13.25%. It indicated one more increase in March but remains data-dependent for its May decision. (See MNI INTERVIEW: BCB Close To Ending Its Hiking Cycle - Volpon)