Brazil: inflation of 0.82% in September, more than expected, due to electricity

WHAT HAPPENED

Brazil recorded an inflation of 0.82% in September, above the expected 0.73%. In 12 months, prices rose 4.58%. Electricity increased by 7.98% and explained almost 4 out of every 10 points of the rise.

WHY IT MATTERS

Inflation accelerated again after falling 0.32% in August. The discount on electricity disappeared and an extra charge for consumption was added. Airfares, fuels, tomatoes, potatoes, and rice also increased. This leaves less room for the Central Bank to lower rates.

AND FOR YOUR PORTFOLIO

For a family, spending 1,000 reais in August cost about 1,008 in September; just the electricity bill of 100 reais went to almost 108. For long-term investments, high rates can make loans more expensive and hinder sectors like housing, consumption, and indebted companies.