Cost of living in Brazil: the eighth consecutive increase in electricity helps to raise annual inflation preview; inflation in Brazil in the last 12 months was 3.22%

According to the Broad Consumer Price Index 15 (IPCA-15), a survey made by IBGE, the inflation pressured by the eighth consecutive increase in electricity, in September was 0.09%, close to that registered in August (0.08%). With the result, the inflation forecast accumulated high of 2.60% in the year and 3.22% in 12 months. The housing group accounted for the largest price change of 0.76%.

According to the website G1, Transport group prices also rose 0.09%, in August the same group came from a 0.78% drop in August. The result was influenced by the 0.35% increase in fuels. Ethanol and diesel prices rose by 2.15% and 0.58%, respectively, while gasoline fell by 0.06% in Brazil.

IPCA-15 numbers reinforce the favorable inflation scenario assessed by the Brazilian Central Bank in the Copom minutes. The 3.22% increase over the past 12 months is well below the center of the target.

This raises expectations that the Brazilian Central Bank will continue to reduce the basic interest rates of the economy, the Selic. High unemployment and controlled inflation require a policy of cutting interest rates for many economists.