SAO PAULO: Brazil inflation remained at a relatively high level in the month to mid-December, sustained by a small increase in gasoline prices and by higher services costs.
The IPCA-15 price index is expected to rise 5.74 percent in the 12-month period through mid-December, according to the median of 18 forecasts in the survey.
The government's year-end inflation target is 4.5 percent, with a tolerance band of two percentage points either way. In mid-November, the IPCA-15 index rose 5.78 percent.
Month-on-month inflation likely edged up to 0.65 percent, according to the median of 26 forecasts. Prices measured by the index rose 0.57 percent in mid-November.
Although the annual inflation rate has eased from a 6.7 percent peak in June, it has failed to reach the center of the government's target even after six interest rate hikes by the central bank.
The benchmark Selic rate is currently at 10 percent, the highest among the world's major economies. Fuel probably led inflation higher in the month after state-run oil giant Petrobras raised gasoline and diesel prices by 4 and 8 percent in late November, ending an eight-month-long freeze.
Seasonal factors likely pushed inflation up as well, analysts said. Air tickets probably crept higher as families looked for holiday destinations, and services prices increased as consumers started to receive their Christmas bonuses.
UNEMPLOYMENT RATE SEEN FALLING
Low unemployment also likely continued to boost consumer prices. Brazil's jobless rate likely fell to 4.9 percent in November, from 5.2 percent in October, according to the median of 25 forecasts.
Statistics agency IBGE will release its inflation and employment figures on Thursday at 9 a.m. local time (1100 GMT).
Forecasts for the monthly increase in consumer prices ranged from 0.57 to 0.71 percent, while estimates for the annual rise ranged from 5.67 to 5.80 percent. Estimates for the unemployment rate ranged from 4.8 to 5.2 percent.
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