Food and Fuel Stir Up Inflation in Brazil

December’s inflation in Brazil as measured by the Broad Consumer Price Index (IPCA) amounted to 0.86%. The rate ended up slightly higher than what the market predicted.

In November the IPCA was 0.69%. These data were released January 14 by Brazilian Institute of Geography and Statistics (IBGE).


For 2004 overall, the IPCA came to 7.60%. This index is used as a parameter by the government in setting its targets for inflation.


Since last year’s target was 5.5%, with a 2.5% tolerance interval (plus or minus), inflation in 2004 was slightly below the 8% upper limit established by the National Monetary Council (CMN).


The major factor that led to an acceleration of inflation in December was rising fuel prices. Gasoline prices rose 5.06%, and alcohol prices were up 2.81%.


Urban bus fares also contributed to December’s inflation, with an increase of 1.60%.


Food products, which had been keeping inflation down, rose 0.65% in December, after a 0.01% deflation in November.


Translation: David Silberstein
Agência Brasil

Tags:

You May Also Like

Paraguay and Brazil Enter 2009 with Itaipu Hydroelectric in Dispute

Brazilian President Luiz Inácio Lula da Silva's main international affairs advisor, Marco Aurélio Garcia, ...

Even the IMF Wants Brazil to Lower Interest Rates

Inspectors from the International Monetary Fund (IMF) praised Brazil’s economic performance following a three-day ...

Brazil’s Piracy Costs US Economy Close to US$ 1 Billion a Year, Says Group

The American group Defenders of Property Rights (DPR) today, March 16, announced that it ...

Brazil Starts to Plan How to Use Its New-Found Oil Riches

Brazil's minister of Planning, Paulo Bernardo, confirmed that the Brazilian government intends to change ...

A Brazilian City Recipe for Recycling Waste and Eliminating Landfills

Maringá, a city in the southern Brazilian state of Paraná, generates 320 tons of ...

Brazil Exports Grow 16%, Way Over World’s Average, But Still 1% of Global Trade

Brazilian exports expansion coupled with the growth in exports caused by the depreciation of ...

Buying Pieces of the Amazon Is Useless, Says Brazilian Indian Leader in London

Davi Kopenawa Yanomami, a Brazilian Indian shaman from the Yanomami people, delivered a letter ...

Brazil's Angra nuclear plant

Brazil Pondering the Nuclear Option

Brazil will increase the use of nuclear energy if it cannot build enough hydroelectric ...

Brazil Feeling Consequences of China’s Economic Cooling Down

Latin America’s largest economy, Brazil, is feeling the consequences of China’s moves to rein ...

Brazilians Caught in Madoff’s Ponzi Scheme Are Keeping Mum

Wealthy Latin Americans, among them Brazilians, are among the biggest victims of an alleged ...