• Categories
  • Archives

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 2005 with the lowest increase since 1998. In 1997, the real, the Brazilian currency had a sharp devaluation. The increase was 5.69%. in 2005, down from 7.6% in 2004.

Even with the low rise in the IPCA, some prices did increase significantly. Such as bus fares, the price of gasoline, and telephone and electricity bills. All of those prices are government controlled.

Urban bus fares jumped an average 10.4%. According to the government statistics bureau (IBGE), that was an increase that had a big impact on low-income family budgets. Gasoline prices rose 7.76% during the year.

Last year’s inflation rate exceeded the bull’s-eye of the federal government’s official target of 4.5%, as well as the revised target of 5.1% announced by the Central Bank (BC).

Still, the 5.69% rate was not off the target, which has an upward tolerance limit of 7%. The rate was also close to the 5.68% forecast by the financial market, according to information contained in the BC’s Focus bulletin, issued at the beginning of the month.

The government uses the IPCA to determine its inflation targets and assess the need to adopt indirect or indirect measures to induce price stability.

Price increases cause the purchasing power of workers’ salaries to decline more rapidly. Lower levels of inflation allow salaries to retain their purchasing power over a longer period of time.

Agência Brasil

Tags:

  • Show Comments (2)

  • Guest

    Good but…..
    …your inflation target was missed 6 out of the 7 years !

    Therefore why put a target too low knowing that you will not reach it ?

    I know the lower the inflation target is, the better it looks like, before the year end results.
    And there you failed just 6 out of 7 times.

    In the U.K, also with an inflation target, they missed it ONLY ONCE !

    But in Brazil, missing targets are great achievements, just as anything you do.

  • Guest

    AS always
    Maniputated !!!

Your email address will not be published.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

US Cruise Ship Allowed to Go on After Quarantine Imposed by Brazil

After Brazilian sanitary officials imposed a 24-hour quarantine following a massive outbreak of what ...

72 Brazilian Congressmen Might Be Expelled for Embezzlement

A Brazilian congressional panel has recommended that 72 House representatives and Senators be expelled ...

Brazil Building Its Own Drones with the Help of Israel

Brazilian defense contractor Avibras will join plane maker Embraer SA and the local unit ...

Brazil’s Embraer 195 Is Now FAA Certified

The US Federal Aviation Administration (FAA) has issued the type certificate for the Embraer ...

For Brazil to Engage Iran Is Not as Foolish as It Seems

On May 15th, 2010, president Luiz Inácio Lula da Silva of Brazil met with ...

Brazil’s Industry Leader Calls Interest Rates ‘Absurd’

As the Brazilian Central Bank released the minutes of the last meeting of the ...

Genocide of Indians Has Been All Too Common in Brazil

To mark UN Indigenous Day on August 9, Survival International, the global movement for ...

Brazil Goes Beyond Self Sufficient to 2.3 Million Oil Barrels a Day

Brazil’s government owned Petrobras averaged during October oil and gas production of 2.343.451 barrels ...

Brazil Will Keep on Buying Bolivian Gas If the Price Is Right, Says Lula

Brazilian President Luiz Inácio Lula da Silva stated Monday, May 15, that Brazil will ...

Brazil’s Indians Growing Six Times Faster Than Average Population

A survey by the Brazilian government statistical bureau (IBGE) has found that Brazil’s Indian ...