Inflation in Brazil Rises by 4.29 Percent in 2024

According to the report, year-on-year inflation was 4.87 percent for the 12 months ending in November, an increase of 0.11 percentage points compared to November 2023.

The government and the Central Bank have set a 3-percent inflation target for 2024, with a tolerance range of 1.5 percentage points, allowing the index to fluctuate between 1.5 and 4.5 percent.

In November, drivers of inflation included food and beverages (up 1.55 percent, contributing 0.33 percentage points), personal expenses (up 1.43 percent, contributing 0.14 percentage points), and transportation (up 0.89 percent, contributing 0.18 percentage points). In contrast, housing prices fell 1.53 percent, and household data-x-items decreased by 0.31 percent.

The Broad Consumer Price Index is closely monitored as a key indicator influencing the Central Bank's Selic interest rate decisions. The Selic rate helps control inflation by influencing economic activity, investment, and employment.

In 2023, Brazil's inflation was 4.62 percent, falling within the target range for the first time since 2020.

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