SAO PAULO (Reuters) – Brazil’s consumer prices as measured by the benchmark IPCA index rose 0.41% in November, below market forecasts of 0.53%, government statistics agency IBGE said on Friday.
Prices rose 5.90% in the 12 months through November, down from an increase of 6.47% in the previous month. Economists polled by Reuters expected a 6.01% rise.
Transportation and food and beverage costs were the main driving group of products behind the rise, contributing around 71% of the November IPCA.
The increase in transport was mainly linked to the rise in fuel prices (3.29%), which had fallen by 1.27% in October. The prices of ethanol, gasoline and diesel rose in November, IBGE said.
“This (increase) occurred due to an off-season period for sugarcane production as gasoline contains anhydrous alcohol in its composition,” said IBGE’s research manager, Pedro Kislanov.
(Reporting by Steven Grattan; Editing by Raissa Kasolowsky)
