Economics
Brazil’s Inflation Surprise Fans Bets of Bigger Key Rate Hike
- Transport and housing costs main contributors to price jump
- Government aims to bypass spending cap, raising fiscal worries
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Brazil’s faster-than-expected inflation in early October is adding to pressure for a dramatic increase in the pace of interest rate hikes at tomorrow’s central bank policy decision.
Consumer prices jumped 1.2% from the month prior, more than all estimates in a Bloomberg survey, the national statistics institute reported on Tuesday. It was the biggest increase for mid-October since 1995. Annual inflation accelerated to 10.34%.