MNI BRIEF: MNI BRIEF: Brazil's September Inflation Up To 4.42%
MNI (BRASILIA) - Brazil's IPCA inflation was 0.44% in September, in line with the 0.46% consensus and up from -0.02% in August driven by higher energy costs, the Brazilian Institute of Geography and Statistics (IBGE) said Wednesday.
On an annual basis, prices rose by 4.42%, up from 4.24% inflation in August, The consensus was for 4.44%.
"The change in the tariff flag from green in August, where there were no additional charges on electricity bills, to red level one, due to reservoir levels, was the main reason for the increase. The red level one flag adds approximately BRL4.46 for every 100 kWh consumed," IBGE said.
The Food and Beverage group recorded a 0.50% increase, with food prices at home rising by 0.56%, following two consecutive months of decline. (See MNI INTERVIEW: More Brazil Budget Freezes If Needed -Guimaraes)