BRASILIA, December 10 Reuters -- Brazil's IPCA consumer price index rose less than expected in November but still marked its strongest print for the month in six years, underscoring the central bank's tough task of controlling rising costs in Latin America's largest economy.
The index showed 0.95% inflation to November from October, down from the 1.25% monthly increase the month before and below the 1.08% median forecast in a Reuters poll of economists. It was the highest for any November since 2015, even though it was the highest for any November.
Transportation costs were the strongest driver, climbing 3.35% in the period, mainly due to a surge of 7.38% in gasoline prices, according to the statistics agency IBGE.
The 12 month inflation rate of 10.74% was lower than the 10.88% rise forecast in the poll, but rose from a 10.67% increase through October and was the highest for the month since November 2003.
The central bank forecast an increase of 10.2% in 2021, far above its annual target of 3.75%, with a 1.5 percentage point margin of error on either side of the table.
In order to bring inflation back to target in 2022 and 2023, policymakers raised the benchmark interest rate by 150 basis points this week to 9.25% and signaled another hike in February.
Brazil's ongoing monetary tightening cycle, the most aggressive among major economies, will drag on activity in 2022, after an economic contraction in the second and third quarter this year, according to analysts.