Brazil likely to see moderate inflation rate in early 2016

The inflation data indicates Brazil's inflation rate will accelerate this year. The full-month inflation number drove by further adjustments in transport prices increased to 9.93% yoy in October. 

If this pattern continues, inflation of the economy should increase to around 10% in November prompting them to forecast mid-month inflation at 9.94% yoy, says Societe Generale. The bank adds there is a considerable upside risks to their 2015 and 2016 annual inflation forecasts of 8.8% and 6.6% respectively. 

However, a slow growth rate and poor performance of labor market may cause a severe slowdown in inflation next year.