Brazil Inflation Shock Fuels Bets on Mammoth 200-Point Rate Hike
- October consumer prices rise 1.25% on month, 10.67% on year
- Transportation and food costs main drivers of inflation
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Brazil’s inflation sped up more than expected in October, spurring bets that the central bank will hike interest rates by as much as 2 percentage points in response to government plans for greater spending.
Annual inflation accelerated to 10.67%, above all estimates in a Bloomberg survey. Consumer prices rose 1.25% from the month prior, the national statistics institute reported on Wednesday. It was the biggest rise for the month of October in nearly two decades.