Inflation ends 2017 with a 2.95% hike, the lowest rate since 1998

The National Broad Consumer Price Index (IPCA), Brazil's official inflation rate, ended 2017 at 2.95%, 3.34 percentage points lower than the 6.29% reported in 2016. It is the lowest rate since 1998, when a 1.65% hike was registered.

The rate closed out near the country's Central Bank forecast at the end of last year. In december, monetary policy makers reviewed their projection from 3.2% to 2.8%.

The figures were released today (Dec. 10) by Brazilian Institute of Geography and Statistics (IBGE). The reading also indicates a 0.44% hike in December, 0.16 percentage points above the 0.28% reported in november. This was the wider monthly variation in 2017. In December of 2016, the rate was at 0.3%.

Below target

Brazilian inflation rate in 2017 missed the official target range established by the Central Bank, of 4.5% plus or minus 1.5 percentage points. 

Of the nine sets of goods and services that make up the official index, the food and drink sector contributed the most to subdue inflation. Responsible for around 25% of families expenses, this set registered a 1.67% deflation.

Translated by Mariana Branco