Brazil inflation outstrips target

(MENAFN- AFP) Brazilian prices rose 0.51 percent in November and the 12-monthly inflation figure rose to just above a government target of 6.56 percent, the National Statistical Institute (IBGE) said Friday.

November's figure followed a 0.42 percent rise in October.

Brazil is battling to rein in rising prices outstripping an official central target of 4.5 and which has now spent four months just above the maximum ceiling of 6.5 percent.

The soaring price of meat -- up 3.46 percent over October and 17.81 percent on the year -- was a major factor and another perishable staple, potatoes, have risen by more than a third over the year.

Food and beverage prices rose overall 0.77 percent in November, housing was up 0.69 percent and transport 0.43 percent.

A liter of gasoline increased 1.99 percent and diesel five percent in November as regulated prices rose.

The central bank on Wednesday raised its key interest rate by 50 basis points to 11.75 percent in an attempt to keep further price rises in check.

The move followed a one quarter point rise a month ago, the first since April and came after President Dilma Rousseff, re-elected in October, appointed a new treasury team led by Finance Minister Joaquim Levy.

Late Thursday, Brazil's government slashed its growth forecast for 2015 from 2.0 to 0.8 percent in line with market expectations.