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Brazil's inflation seen above target in mid-November after fuel hike

Published 17/11/2014, 16:39
Brazil's inflation seen above target in mid-November after fuel hike
PBR
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BRASILIA (Reuters) - A government-sponsored increase in fuel prices probably kept Brazil's inflation rate above the official target in mid-November, a Reuters poll showed on Monday.

Consumer prices advanced 6.54 percent in the 12 months through mid-November , easing from a rise of 6.62 percent one month before but still above the 6.5 percent ceiling of the central bank's target, according to the median of 22 market forecasts for the IPCA-15 inflation index.

When compared with mid-October , consumer prices probably rose 0.48 percent, the same rate of increase of a month earlier, according to the median of 28 estimates.

Mid-November inflation results will be published on Wednesday at 9 a.m. (1100 GMT).

Brazil's inflation rate has climbed, mostly because of hefty government spending and a still-tight labour market, even as the economy has slowed considerably this year. The central bank, at risk of missing its year-end target for the first time in a decade, is expected to raise interest rates through this year and next.

Economists said the mid-November inflation figure would also reflect a small increase in fuel prices by state-run Petróleo Brasileiro SA (SA:PETR4). Petrobras, as the company is commonly known, raised wholesale gasoline and diesel prices for the first time in nearly a year earlier this month.

Food prices also rose more quickly in the month, according to Credit Suisse and Itau Unibanco estimates.

© Reuters. A technician works on an electrical post on a road in Itu

Forecasts for the monthly price change ranged from 0.41 to 0.61 percent. Estimates for the 12-month rate varied from 6.45 to 6.66 percent.

(Reporting by Silvio Cascione; Editing by Lisa Von Ahn)

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