Brazil Flirting with Deflation

The Cost of Living Index (Àndice do Custo de Vida) (ICV), in the city of São Paulo, in the southeast of Brazil, rose 4.54% in 2005, the lowest in seven years and the second lowest since the index began in 1959, reports the union-linked Statistics and Socio-Economic Department (Departamento Intersindical de EstatÀ­stica e Estudos Socioeconômicos) (Dieese).

Compared to 2004, when it was 7.7%, the ICV was down 3.16 percentage points.

Inflation in 2005 was so low that in two months, June and July, there was deflation.

Cornélia Nogueira Porto, of Dieese, says the ICV report is very good news and could lead to a relaxing of the government’s rigid monetary policies.

Porto says that the Dieese inflation forecast for 2006 is 3% to 3.5%, that is, a further reduction.

As for 2005, the Dieese report says that prices rose above average mainly in transportation, education and health, while they remained very low in all other sectors.

Agência Brasil

Tags:

  • Show Comments (1)

  • talia lough

    this is OUTRAGEOUS! 🙁

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

Ads

You May Also Like

Dictatorship-Era Law Regulating Journalists in Brazil to Be Challenged

Reporters Without Borders is to challenge a ruling by Brazil’s Superior Court of Justice ...

3% of Brazil Forest Get Green Seal Certification

Approximately 1.5 million hectares, equivalent to 3% of Brazil’s native forest, possess quality certificates, ...

Brazil Up News: Record High Job Creation and Exchange Balance Back to Surplus

In November, the Brazilian Labor minister, Carlos Lupi, announced, Brazil created 246,695 formal job ...

Titanic Brazil

During Brazil’s entire history, those above deck have thrown leftovers to those in the ...

Brazil Lula’s Foolish Guerrilla War Against Its Creator, the Media

The most recent press-hunt season started Wednesday (August 3), when President Lula went for ...

Brazil’s Lula Makes Case for State Intervention

Brazil’s President Luiz Inácio Lula da Silva said today that some regions of the ...

Export, Export, Brazil Tells Small Business Owners

About 1,200 Brazilian small and medium businessmen are attending in the southeastern Brazilian city ...

Women’s Blues in Brazil

Once again Brazilians are commemorating International Women’s Day. There isn’t that much to celebrate ...

Brazil: Here, City Hall Does the Kidnapping

Brazil’s Indianist Missionary Council says it has evidence indicating that the city hall of ...

Brazil’s Petrobras Celebrates Records in Production and Stock Price

The total oil and gas production by Petrobras, Brazil’s state owned oil company, increased ...