Brazil's wholesale-heavy IGP-M inflation index rose 0.82 percent in November, above October's 0.39 percent rise but in line with market forecasts, the private Getulio Vargas Foundation think tank said on Monday.

Wholesale prices, which account for 60 percent of the IGP-M index, rose 0.99 percent in November compared with a 0.44 percent rise in October. Consumer prices rose 0.30 percent in November after edging up 0.05 percent in the previous month.

Brazil's central bank has raised its benchmark Selic lending rate by 1.25 percentage points to 17.25 percent in the past three months and has warned it might accelerate the hikes if inflation forecasts did not ease back.

But earlier on Monday the central bank's weekly survey of inflation expectations among 100 financial institutions showed the average forecast for the official IPCA consumer price index in 2005 had fallen for the first time this year.

The survey showed the market expects IPCA inflation of 5.8 percent in 2005, down from 5.9 percent last week. The central bank has an inflation target of 5.1 percent for next year with a 2.5 percentage point plus or minus margin of error.

The IGP-M price index has risen 11.59 percent in the first 11 months of this year and 12.28 percent in the 12 months to the end of November, the Getulio Vargas Foundation said.

(From Reuters, November 29, 2004)

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