Brazil's Sao Paulo inflation accelerates in September

Wed Oct 3, 2012 7:21am EDT

* IPC-FIPE index rises 0.55 pct in Sept, beats forecast
    * Analysts surveyed expected index rise of 0.45 pct
    * Index seen as early preview of national price index

    SAO PAULO, Oct 3 (Reuters) - Inflation in Sao Paulo,
Brazil's most populous city, accelerated in September and topped
market forecasts because of higher food prices, an economic
research institute said on Wednesday.
    The IPC-FIPE index rose 0.55 percent last
month, compared with a gain of 0.27 percent in August, according
to the University of Sao Paulo's FIPE research institute. 
    The index was expected to rise 0.45 percent in September,
according to the median of 15 forecasts in a Reuters poll.
Estimates ranged from 0.41 percent to 0.48 percent.
    The FIPE index is closely watched by economists as an early
gauge of Brazil's benchmark IPCA inflation index, 
which is targeted by the central bank when setting interest
rates. Brazil's statistics agency IBGE will release September's
IPCA index on Friday.
    The IPC-FIPE measures inflation within the boundaries of the
City of Sao Paulo and does not include prices in the wider
metropolitan area.
    Below is the result for the FIPE index price categories: 
    Item                August                 September
- Housing              -0.13 pct               0.14 pct
- Food                  1.08 pct               1.74 pct
- Transportation       -0.24 pct               0.16 pct
- Personal care         0.37 pct               0.14 pct
- Health                0.55 pct               0.56 pct
- Clothing              0.22 pct               0.37 pct
- Education             0.16 pct               0.05 pct
- INDEX                 0.27 pct               0.55 pct