Brazil's annual inflation rate reaches 4.12 percent

Rising food prices raised Brazil's consumer price index up to 0.3 percent in October, putting the country's annual inflation rate at 4.12 percent.

Photo: Brazil's annual inflation rate reaches 4.12 percent

The monthly IPCA inflation index was up from 0.18 percent in September, the IBGE said. But the annual rate was down slightly from the 4.15 percent for the 12-month period that ended in September.

The October rise was led by price increases in staples such as meats, beans and potatoes.

Gasoline prices rose 0.36 percent in October, while clothing prices jumped 0.72 percent as new lines of clothes and footwear hit the market for the South American summer season.

The Central Bank said last month that rising consumer demand could prompt increased inflation. The Brazilian real is at a seven-year high against the U.S. dollar, which makes foreign goods cheaper for Brazilian consumers.

The Central Bank decided in October to maintain Brazil's benchmark Selic interest at 11.25 percent to contain the possibility of rising inflation. High interest rates have controlled inflation but slowed economic growth.