Brazil's IPCA 12-Month Inflation Rises 2.70% in October

By Jeffrey T. Lewis Features Dow Jones Newswires

Brazilian inflation picked up in October from a year earlier, the second consecutive increase, as housing prices increased.

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The country's consumer price index rose 2.7% in the month compared with October 2016, and increased 0.42% from September. In September, the year-on-year increase was 2.54%.

The cost of housing rose 1.33% in October from the previous month, and clothing prices increased 0.71% in the same period. Food prices fell 0.05% in the month.

Even with the faster rate of 12-month inflation in October, price increases are still slower than the central bank's target of 4.5%, with a tolerance range of 1.5% in either direction. The bank cut its benchmark interest rate, the Selic, to 7.5% at the end of October and indicated there could be at least one more cut in the current cycle.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

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November 10, 2017 06:36 ET (11:36 GMT)