Consumer prices as measured by the benchmark IPCA index rose 6.41% in the 12 months through October from 6.25% in September. The annual rate was the highest since July 2005.
As the global financial crisis has investors abandoning emerging markets, Brazil's currency real has lost a quarter of its value against the US dollar in two months, pushing up prices of goods and materials purchased overseas.
The October CPI was up 0.45% with food prices leading with 0.69%, boosted by a 7.74% jump for the price of black beans, a basic staple, and 3.61% for meat.
Since January inflation has remained above the 4.5% annual midpoint target of Brazil's central bank. The uncertain economic outlook convinced the Central Bank last October 29 to leave the benchmark rate unchanged at 13.75%, according to minutes of their meeting published this week.
The real lost 12% in October following a 14% loss in September, which was the Brazilian currency's worst month since a 20% plunge in September 2002.
Earlier this week it was announced that Brazil vehicle registrations during October fell for the first time in 2 years as credit dried up and interest rates rose. Vehicle registrations slipped to 239.200 units in October from 244.500 units a year earlier, the country's automakers association, known as Anfavea said in São Paulo. However production was little changed at 296.300, while exports declined 16% to 66.000.
Finance Minister Guido Mantega said a government-controlled bank will provide the equivalent of US$ 1.9 billion in loans to carmakers' financial arms to help sustain sales this month and in December.
Mercopress