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09 Jan 2012

Brazilian inflation rose 6.5% in 2011

Data is within the annual inflation target

Consumer prices in  the 2011  rose  by 6.5%.

Inflation has, over a prolonged period, remained above the target of 4.5% +  / - 2% points  per annum. Therefore,  it must be  regarded  as  a  minor  victory for the  Banco  Central do  Brasil (BCB)  that the 2011 target has just been met in the last  month of the year. The inflation rate rose 0,5 % in December over November.

Inflation

Read  more about  the development of the inflation rate over the past months in the latest quarterly report 2011 Q4.

At the past three interest rate meetings   BCB  has  lowered interest rates  to 11p.a., and the  real interest rate  is  immediately  4.22% p.a.

Inflation is heading downward and is  expected to be  reduced to  5.31%  p.a.  in 2012  according to consensus.  Source: BCB