24.6 C
New York
Tuesday, May 17, 2022

Brazil’s inflation accelerates to a 7-year high by mid-March

- Advertisement -
- Advertisement -

By Marcela Ayres

BRASILIA, March 25 (Reuters) – Inflation in Brazil rose more than expected in the month to mid-March, the biggest jump for that period in seven years, data showed on Friday, underscoring widespread price pressures aa despite the aggressive adjusted money carried out by the Central Bank.

Brazil’s official IPCA-15 consumer price index rose 0.95% in the month, up from 0.99% in February, but above the median forecast in a Reuters poll for a rise of 0. .87%.

According to the IBGE statistics agency, the nine groups of products and services surveyed recorded price increases, especially food and beverages, which increased 1.95% compared to the previous month.

Inflation in the 12 months to mid-March accelerated to 10.79%, also above the survey’s 10.69% projection.

The reading is far from the central bank’s year-end target of 3.5%, reflecting already complex domestic inflationary dynamics that were further affected by rising commodity prices after the Russian invasion of Ukraine.

The head of the Central Bank of Brazil, Roberto Campos Neto, said that inflation should peak in April, emphasizing that the short-term figure will be “a little higher” than the authorities of the governing body expected.

Earlier this month, the Central Bank raised the benchmark interest rate by 100 basis points to 11.75%, from a record low of 2% seen last March, and signaled that it would use another 100 basis point increase in may.

The aggressive cycle of interest rate hikes could weigh on the performance of the economy this year.

(Reporting by Marcela Ayres. Editing in Spanish by Marion Giraldo)

Source link

- Advertisement -

New Articles