Inflation trending higher amid stronger dollar, oil prices

Some economists already expect inflation to come in slightly above the target this year due to the effect of a stronger dollar on the real and higher oil prices. The Brazilian Institute of Geography and Statistics (IBGE) reported Friday a 0.48% rise in official gauge IPCA in September, following a 0.09% decline in August. The index advanced 4.53% in the 12-month period ending in September, while the Central Bank’s official target is 4.5%. Itaú Unibanco says the weaker exchange rate is affecting wholesale prices more intensely and may put additional pressure on consumer prices over the next few months.