The Brazilian Institute of Geography and Statistics said on Friday that Brazil's annual inflation rate rose to 4.47% in mid-September, from 4.24% the previous month, exceeding the average economist forecast of 4.30%.
Prices rise 0.70% over the period
Consumer prices rose 0.70% in the period through mid-September, after falling 0.40% in mid-August. The increase was above the average economist forecast of 0.53%.
Electricity drives housing costs higher
Housing costs led the monthly increase, rising 2.07% on the back of higher electricity prices, while food and beverage prices climbed 0.4%.
Despite the acceleration in prices, annual inflation remained within the central bank's target range, set at 3% plus or minus 1.5 percentage points.
Fifth rate cut ahead of election
The central bank cut its benchmark Selic interest rate by 25 basis points last week to 13.75%, marking its fifth consecutive cut. It pointed to signs of slowing economic activity while keeping its options open ahead of next month's election.
Inflation has become a central issue in the election campaign, as leftist President Luiz Inacio Lula da Silva seeks re-election in a contest against right-wing Senator Flavio Bolsonaro.
