Broadest Brazil Inflation Measure Accelerates Less Than Expectedby
Brazil’s broadest measure of inflation accelerated less than economists estimated in September, further improving the outlook for a cut in the key interest rate.
Wholesale, consumer and construction prices as measured by the IGP-M index rose 0.2 percent after a 0.15 percent advance in August, according to data from the Getulio Vargas Foundation, an education and research institution. That was below all but four estimates from 27 economists surveyed by Bloomberg, whose median forecast was for a 0.25 percent increase. The index, which is weighted 60 percent in wholesale prices, rose 10.66 percent in the past 12 months.
The last three IGP-M readings have been the lowest in two years. Economists surveyed weekly by the central bank estimate the index will reach 8.17 percent by year-end, still above their 7.25 percent forecast for the headline IPCA inflation measure.