Annual inflation in Brazil hit a 12-year high last year at 10.67 percent, the government said Friday, the latest sign of economic troubles in the world's seventh largest economy.

The figure -- the highest since 2002 -- was more than double the government's 4.5 percent inflation target.

State statistics agency IBGE said consumer prices rose 0.96 percent month-on-month in December, after a 1.01 increase in November.

In 2014, annual inflation stood at 6.41 percent.

Last year's inflation figure, while high, was still slightly below market expectations of 10.72 percent and the central bank's last forecast of 10.8 percent.

For this year, the central bank is expecting 9.2 percent inflation in the first quarter, with a gradual decrease during the year to reach  6.2 percent in December.

It estimates 4.8 percent inflation for year's end in 2017.

Latin America's biggest economy is going through a turbulent economic period with deep recession, rising unemployment and a dramatic drop in investor confidence fueled by an impeachment drive against President Dilma Rousseff.

The dramatic slowdown began last year, causing the government to revise its 2016 budget targets  five times. It is now expected to post a $31 billion deficit.

The IMF expects that Brazil will stay in recession in 2016. If confirmed, this would be the first time since 1930-31 that Brazil is in recession two years in a row.