Brazil's economy unexpectedly grew for a third straight month in October, withstanding high interest rates that the central bank has continued to increase as it battles accelerating inflation.

The monetary authority's economic activity index, a proxy for gross domestic product, rose 0.14% from September, above the 0.2% decline analysts estimated in a Bloomberg survey but still below the 0.88% growth recorded in the prior month. From a year ago, the gauge rose 7.31%, according to a report published Friday.