Inflation in Brazil quickened in the month to mid-April as prices of cooking gas, cigarettes and housekeeping services surged, government data showed on Friday. The benchmark IPCA consumer price index rose 0.36 percent in the month-long period through mid-April, gaining steam after rising 0.11 percent in the month to mid-March, statistics agency IBGE said on Friday.
The index had been expected to rise 0.37 percent, according to the median forecast of 30 economists surveyed by Reuters. Estimates ranged from 0.22 percent to 0.42 percent. Cigarette prices surged 6.62 percent in the month to mid-April, while cost of housekeeping was up 1.82 percent, accounting for the single largest contributions for quickening of inflation, the IBGE said. Cooking gas costs rose 3.2 percent, also contributing to the pick up in the IPCA index.
In the 12 months to mid-April the index jumped 5.4 percent, down from the 5.65 percent increase in the year to mid-March and compared with 5.61 percent in the year though the end of March. The central bank, which uses the IPCA consumer price index as a guide when setting interest rates, has a 4.5 percent annual inflation target for 2009 and 2010, with a tolerance band of plus or minus 2 percentage points. The IPCA also sets the value of tens billions of dollars of Brazilian government bonds.