Brazil's annual inflation rose less than expected in mid-November though a food price surge continued to add pressure, government data showed on Tuesday. The IPCA-15 consumer price index rose 5.78 percent in the 12 months to mid-November, below the 5.87 percent median forecast in a Reuters poll, government statistics agency IBGE said.
Inflation in the 12 months to mid-October was 5.75 percent. On a monthly basis, inflation rose 0.57 percent in the month to mid-November, up from 0.48 in the previous month. The index had been expected to rise 0.65 percent, according to the Reuters poll. Although inflation was less than expected in the month, price increases became more widespread. Prices for 70.7 percent of the goods and services surveyed by IBGE increased in mid-November, up from 65.8 percent in the prior month, according to calculations by Banco Fator.
Food prices led inflation higher in the month to of November, with an increase of 0.84 percent over mid-October, faster than the 0.7 percent rise posted for the month to mid-October. Stubborn inflation has dented the credibility of Brazil's central bank over the past few years and undermined business and investor confidence. Policymakers have responded with five interest rate increases so far this year and are widely expected to take the benchmark rate to 10 percent this month.