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Your email address will not be published.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 *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Argentina Calls Brazil a Heavy Weight and Complains About Asymmetries

Brazil and Argentina agreed to hold talks next week to address the ongoing trade ...

While the US Alienates Brazil and LatAm Spain Woos Them

The 2004 elections in Spain pitted incumbent Prime Minister José MarÀ­a Aznar López of ...

Lula Tells Palestinians Their First Challenge Is to Break Israeli Blockade

Apart from seeking greater participation in the peace process between Israel and Palestine, Brazilian ...

Brazil’s Unemployment Rate Remains at 9.4%

Brazil’s Ministry of Labor has just released its August employment survey which shows that ...

Brazil’s First Astronaut Is Awarded Brazilian Highest Honor

The Brazilian astronaut, Marcos Pontes, was acclaimed this Thursday, April 20, with the National ...

Male Power

By Brazzil Magazine "Homem tem que ser durão" [A man’s got to be tough] ...

Brazil Expects Foreign Investments to Fall US$ 10 Billion in 2009

Brazil's estimated trade surplus (positive balance of exports less imports) for 2008 has been ...

Presidential Campaign in Brazil Starts in a Dead Heat

The campaign for Brazil’s October presidential election was officially launched this Tuesday, July 6. ...

2005 Brought Lowest Inflation in Seven Years to Brazil: 5.69%

The Broad Consumer Price Index (Àndice de Preços ao Consumidor Amplo) (IPCA) closed out ...