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:

Ads

You May Also Like

Boeing B777-300ER from Brazilian TAM

Brazil’s TAM Doubles Its Boeing Fleet to 8 B777-300ERs

Brazilian airline TAM announced the acquisition of four additional new Boeing 777-300ERs. With this ...

Coffee Exhibit Travels Across Brazil

The Ministry of Agriculture, Livestock and Supply and the Brazilian Coffee Industry Association (ABIC) ...

Brazil’s Bankrupt Varig Is Sold, But Airline Is Not Out of the Wood Yet.

A Rio de Janeiro business court has accepted the sale of Brazil’s biggest but ...

Brazil’s New Eletrobrí¡s Chief Wants to Go Global

AloÀ­sio Vasconcelos, who took office yesterday as the new president of Eletrobrás – Centrais ...

Brazil Happy with Economy and Hopeful for 2005

Growth in the Gross Domestic Product (GDP) for the fifth quarter in a row ...

All Congress Leaders in Brazil Knew About Ruling PT’s Bribe Money

Brazilian ruling PT’s (Workers Party) former secretary general Silvio Pereira confessed that all top ...

Brazil’s Theme Song

The seeds of bossa nova began with the music and movies of the United ...

For World Bank Chief, Brazil Is Doing Well, But Millions Are Still Too Poor

Brazilian President Luiz Inácio Lula da Silva met Thursday, December 15, with the president ...

Shoes Not Only Made In But Also Of Brazil for the Foreign Market

A program for encouraging exports of Brazil made shoes called Brazilian Footwear, is going ...

Half of Brazil’s Corporate Shares Are Bought by Foreigners, Mainly from the EU

Foreign investors were responsible for 45-50% of the transactions effectuated to acquire shares of ...