Economy: Brazil Inflation Edges Closer to Upper End of Target

July, 24
Brazil's consumer prices rose 0.63 percent in the month through mid-July, pushing the annual inflation rate to a 32-month high and closer to the upper end of the central bank's target.
Inflation as measured by the benchmark IPCA-15 index quickened to 6.30 percent in mid-July from 5.89 percent the previous month, the statistic agency said today in Rio de Janeiro. Brazil's central bank targets 4.5 percent inflation, plus or minus two percentage points.
Policy makers led by President Henrique Meirelles raised the overnight rate by three quarters of a percentage point to 13 percent last night to bring inflation back to target in a ``timely fashion.'' The increase was bigger than economists forecast for a second time in three meetings.
Thirty-one of 45 economists surveyed by Bloomberg News predicted a half-point increase as in the two previous meetings.
Monthly consumer prices through mid-July rose less than 0.67 percent median estimate in a Bloomberg survey of 34 economists. Inflation eased from 0.90 percent in mid-June.
Source: http://www.bloomberg.com/apps/news?pid=20601086&sid=a1xb6M6sARc4&refer=news