Inflation in Brazil edges up in February to an annualized 5.68%

Thursday, March 13th 2014  – 23:16 UTC

Inflation edged up in Brazil in February to hit an annualized rate of 5.68%, following a 0.69% monthly rise in February, national statistical office IBGE said Wednesday.

The monthly increase followed on from a 0.55% rise in January for a 1.24% hike over the two months.

Those numbers suggest the government will miss its underlying target of 4.5% for 2014, though the upper limit of Brasilia’s target range is two percentage points higher.

Last year’s rise in February was 0.6% on the way to a 5.91% rate for 2013 as a whole.

The rising cost of school tuition, up 7.64%, was a major element behind the latest jump.

The government last month responded by raising its key interest rate by 25 basis points to 10.75% to rein in rising prices, which come at a time of moderate growth with GDP having risen 2.3% in 2013. This year, the markets forecast a rise of just 1.68%.