Brazil's inflation rises to 4.47% and nears the target ceiling
WHAT HAPPENED
Brazil's inflation rose 0.70% in September and reached 4.47% over 12 months, nearly touching the official ceiling of 4.5%. Residential electricity increased by 7.42% in the month.
WHY IT MATTERS
The data complicates the central bank's position: it is lowering the Selic rate to boost growth, but prices are rising faster than expected. Housing, consumption, and credit feel this tension first; crossing the ceiling would force the bank to explain the deviation.
AND FOR YOUR PORTFOLIO
For your wallet, 100 reais from a year ago buys about 4.47% less today: something that cost 100 now costs 104.47. Persistent inflation may also delay future rate cuts and make credit more expensive for longer.
💬 TELL IT LIKE THIS
“Brazil is making credit cheaper just as inflation approaches the limit: boosting the economy and controlling prices are in direct conflict.”