Brazil inflation rises to 4.14% as fuel, food prices drive up costs

Consumer prices in Brazil rose 0.88% month-on-month in March, up from 0.7% in February, according to data released by the national statistics agency IBGE.

On a yearly basis, inflation reached 4.14%, compared with 3.81% a year earlier. Both figures came in slightly above market expectations, with analysts surveyed by Trading Economics forecasting a 0.77% monthly increase and 4% annual inflation.

Transport costs were the main driver of price growth, rising 1.64% after a 0.74% increase in the previous month. Within the sector, fuel prices saw sharp gains, with petrol up 4.59% and diesel surging 13.9%.

Food prices also accelerated, increasing 1.56% compared with just 0.26% in February, adding further pressure on household budgets.

By contrast, inflationary pressures eased in some service sectors. Healthcare costs rose 0.42%, while education prices increased only 0.02%, following a steep 5.21% jump the previous month.

By Sabina Mammadli