Brazil central bank blames food price shock for inflation target miss

By Kitco News / January 10, 2018 / www.kitco.com / Article Link

SAO PAULO, Jan 10 (Reuters) - Brazil's central bank on Wednesday blamed a record food harvest for dragging the 2017 inflation rate below the official target range for the first time ever.

In an open letter, central bank chief Ilan Goldfajn said supply shocks stemming mostly from food prices accounted for over four-fifths of the difference between the 2.95 percent inflation rate in 2017 and the 4.5 percent target. (Reporting by Bruno Federowski; Editing by Jonathan Oatis)

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