MNI BRIEF: Brazil's IPCA Inflation 5.17% In September

Brazil's IPCA inflation was 5.17% in September, up from 5.13% in August, but below the 5.21% analyst consensus, Brazilian Institute of Geography and Statistics (IBGE) data showed Wednesday. 

The increase was driven mainly by energy costs.On a monthly basis, consumer prices rose 0.48%, compared with a decline of 0.11% in the previous month.

Inflation has remained above the upper limit of the Central Bank of Brazil's 3% target range, which allows for a deviation of 1.5 percentage points in either direction. The BCB kept its Selic rate on hold at 15.00% last month. "The main influence came from residential electricity, which went from -4.21% in the previous month to 10.31% in September, recording the largest individual impact (0.41 p.p.) on the month’s rate," IBGE said. (See MNI INTERVIEW - BCB To Hold Rates Until Q1 2026 - Schwartsman)