Even so, was the highest for any November since 2015. Transportation costs were an important aspect of the rise, increasing 3.35% in the period, mainly driven by the 7.38% increase in gasoline prices, statistics agency IBGE said.
The 12-month inflation rate of 10.74% was also lower than a 10.88% increase predicted in the survey, but increased from a 10.67% increase through October and was the highest of the month since November 2003.
The Central Bank revised its inflation outlook on Wednesday, forecasting an increase of 10.2% in 2021, well above its annual target of 3.75%, with a margin of error of 1.5 percentage points on both sides.
In an attempt to bring inflation back to its target in 2022 and 2023, the monetary policy authorities raised the benchmark interest rate by 150 basis points this week to 9.25% and signaled another such hike in February.
Analysts say Brazil’s ongoing monetary tightening cycle, the most aggressive of any major economy, will affect activity in 2022, after an economic contraction in the second and third quarters of this year.
Source From: Ambito
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