UPDATE 1-Inflation in Brazil speeds up in month to mid-Nov

Wed Nov 26, 2008 6:30am EST
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SAO PAULO, Nov 26 (Reuters) - Inflation in Brazil sped up in the month to mid-November as food and drink prices surged, official data showed on Wednesday, putting pressure on the central bank to raise interest rates to rein in prices.
Brazil's benchmark IPCA inflation index rose 0.49 percent in the month to mid-November, speeding up from a 0.3 percent increase in the month to mid-October, the government's statistics agency IBGE said.
The index was expected to rise 0.5 percent, according to the median forecast of 22 economists surveyed by Reuters. Estimates ranged from 0.47 percent to 0.57 percent.
With the latest increase, the IPCA has now risen 5.79 percent in 2008 through mid-November and a lofty 6.54 percent in the last 12 months. That raises the prospect that the IPCA could surpass the ceiling of the central bank's year-end inflation target of 6.5 percent.
The so-called IPCA-15 tracks consumer prices from around the 15th of one month to the 15th of the next. Brazil's central bank uses the IPCA as a guide when setting interest rates.
Citing concerns about the impact of the global financial crisis on Brazil's economy, the central bank left its benchmark lending rate unchanged at its last monetary policy meeting in October despite rising inflation.
The bank's next monetary policy meeting is scheduled for Dec. 9-10.
Food and beverage prices were the main driver of inflation in the last month, climbing 0.9 percent after rising just 0.05 percent in the month to mid-October. Beef prices, which jumped 4.52 percent, were largely to blame.
(Reporting by Todd Benson; Editing by Victoria Main)