Brazil's benchmark IPCA inflation rate rose to 7.23 percent year-on-year during the past 12 months, the highest since 2005, the country's official statistics agency IBGE reported Tuesday.

The rate far surpassed the country's target of 4.5 percent and was above the 6.5-percent government ceiling.

During the first eight months of this year, the IPCA rate reached 4.42 percent, from 3.14 percent in the same period last year.

According to the report, the high IPCA rate was mainly due to the rise in food prices, which accounted for almost half of the inflation.

Brazil's Monetary Policy Committee (Copom) has raised the country's annual basic interest rate Selic consecutively five times this year to 12.5 percent from 10.75 percent since President Dilma Rousseff took office in January.

However, last week the Selic rate was cut for the first time this year to 12 percent because of the widening global financial crisis.

 VietNamNet/Xinhuanet