RIO DE JANEIRO, March 12 (Xinhua) -- Brazil's inflation in February was the highest for that month since 2003, reaching 1.31 percent, surpassing January's 0.16 percent and the 0.83 percent recorded in February last year, the state-run Brazilian Institute of Geography and Statistics (IBGE) said Wednesday.
Accumulated inflation in Brazil reached 1.47 percent in the first two months of the year and 5.06 percent in the past 12 months ending February, marking the first time since September the rate has gone above 5 percent.
According to the IBGE report, all nine categories of products and services gauged saw price increases in February, led by education (4.70 percent) and housing (4.44 percent).
In 2024, Brazil saw 4.83 percent inflation, exceeding the 4 percent target rate set by the government and central bank, and the margin of tolerance capped at 4.5 percent.
In 2025, the central bank is pursuing a continuous inflation target, that is managing monetary policy to consistently keep inflation at a certain level over the long term, not just the calendar year (January-December).
According to this model, if target inflation is 3 percent annually and cumulative inflation goes below the minimum margin of tolerance of 1.5 percent or above the maximum of 4.5 percent for six consecutive months, the target is seen to have been missed.
Financial market projections expect inflation in the South American country to reach 5.68 percent in 2025.
In September 2024, the central bank began raising the benchmark interest rate (Selic) in a bid to contain price increases and anchor expectations. According to the financial market, the rate will end the year at 15 percent, up from the current 13.25 percent annually.
