2017.09.2119:55:00UTC+00BRAZIL: Preliminary CPI Rises 0.11% In September

Brazil's official preliminary inflation index rose 0.11% in September on a monthly basis, slightly below market expectations (+0.13%), said the country's statistics office. The monthly variation was lowest since July 2013 (+0.07%). Considering only the results for September, this was the lowest since 2006 (+0.05%).

Through September, the preliminary indicator accumulates increases of 1.90% in the year, decelerating from 5.60% in the same period of 2016. In the last 12 months, the accumulated inflation reached 2.56%, in line with the median estimates. In 12 months, the rate is the lowest for the period since February 1999 (+1.80%).

According to the Brazilian statistics office, Transportation (from +1.35% to +1.25%), Personal Expenses (from +0.34% to +0.45%) and Clothing (from -0.29% to +0.31 %) groups were the main influencers of the preliminary inflation index monthly increase in September. Together, these groups had an impact of 0.29 percentage point (pp) on the overall result of the indicator, being Transportation responsible for 0.22 pp.

At the opposite end, the Food and Beverage group fell the most (-0.94%), with a -0.23 pp impact in the index. According to the Brazilian statistics office, food for home consumption fell by 1.54%, influenced by with tomatoes (-20.94%), beans (-11.67%), garlic (-7.96%), %), crystal sugar (-4.71%) and packed milk (-3.83%).

In the regional assessments, Bras?lia posted the highest increase in September (+0.69%), largely due to the increase in gasoline (+9.93%), higher than the national average (+3.76%). The highest drop in prices was recorded in Goi?nia (-0.29%), dragged by electricity (-2.96%) and food (-1.90%).

The preliminary inflation rate considers the reference prices collected between August 16 and September 13 and compared to July 14 through August 15.