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:

You May Also Like

Jobs in Brazil Up for 3rd Month in a Row

Industrial employment in Brazil grew 0.2% in July, the third gain in as many ...

Brazil: Starving at Home to Fatten Speculators

The Brazilian economy continues to be the cave of Ali Baba transformed into a ...

Brazilian former president Fernando Henrique Cardoso

Brazil’s Cardoso Writes a Poison Pen Letter

When former President Fernando Henrique Cardoso’s memoirs, A Arte da Política, were published earlier ...

In 20 Years, Death of Young Brazilians Grows from 30 to 55 per 100,000

The number of young people murdered in Brazil nearly doubled in a little over ...

An Explosive Situation in Rio: Manholes Detonating Like Bombs

Once again this week a manhole in the center of Rio, on the corner ...

Inspection Not Enough to Stop Amazon Deforestation, Says Brazil Minister

The number of cleared areas in the Amazon went up 6% in one year, ...

Unable to Beat or Join Chinese, Brazil Makes Fancier Kid Shoes

The Middle East is one of the regions of the world to where Brazilian ...

Keeping Your Brazilian Social Security Number Is a Yearly Chore

CPF (Cadastro de Pessoa FÀ­sica – Physical Person Registration), a kind of Social Security, ...

In Popularity List Brazil’s Lula Comes at the Top. Bush and Chavez at the Bottom

Brazil and Chile's presidents, Luiz Inácio Lula da Silva and Michelle Bachelet, are the ...

Industrial Production in Brazil Falls to Lowest Level in Four Years

Brazil’s industrial production dropped last June, remaining at 39.6 points from a previous 48.4 ...