Brazil's rate of inflation in March picked up at the quickest pace in 11 years for that month, challenging the central bank's plan to stop raising interest rates soon and complicating President Dilma Rousseff's chances of re-election. Brazil's benchmark IPCA consumer price index jumped 0.92 percent in March from February, exceeding all 37 forecasts in a Reuters poll. It was the steepest increase for the month since 2003, statistics agency IBGE said on Wednesday.
In the 12 months through March, consumer prices rose 6.15 percent, inching closer to the central bank's target ceiling of 6.5 percent. Food prices increased 1.92 percent from February as irregular rainfall in southern Brazil early this year hurt crops. Prices of basic staples such as tomatoes, potatoes and beans spiked more than 10 percent in March from February. Fuel costs also rose sharply, with ethanol biofuel jumping 4.07 percent from February. Brazil's inflation is quickening right when the central bank has signalled it may end a year-long campaign of interest rate increases.