Food and Fuel Stir Up Inflation in Brazil

December’s inflation in Brazil as measured by the Broad Consumer Price Index (IPCA) amounted to 0.86%. The rate ended up slightly higher than what the market predicted.

In November the IPCA was 0.69%. These data were released January 14 by Brazilian Institute of Geography and Statistics (IBGE).


For 2004 overall, the IPCA came to 7.60%. This index is used as a parameter by the government in setting its targets for inflation.


Since last year’s target was 5.5%, with a 2.5% tolerance interval (plus or minus), inflation in 2004 was slightly below the 8% upper limit established by the National Monetary Council (CMN).


The major factor that led to an acceleration of inflation in December was rising fuel prices. Gasoline prices rose 5.06%, and alcohol prices were up 2.81%.


Urban bus fares also contributed to December’s inflation, with an increase of 1.60%.


Food products, which had been keeping inflation down, rose 0.65% in December, after a 0.01% deflation in November.


Translation: David Silberstein
Agência Brasil

Tags:

You May Also Like

The Poor Plight Is the Wealthy Nations’ Responsibility, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva reinforced his appeal to wealthy nations to ...

Brazil’s Gol Goes North and Teaches Mexico to Fly on the Cheap

Gol Linhas Aéreas Inteligentes S.A., Brazil’s no-frills airline, announced yesterday that it has signed ...

Brazilian Conservationist Kills Self to Protest Alcohol Plants

Francisco Anselmo de Barros, 65, wrapped himself in an alcohol-soaked blanket and set it ...

Presidential Hopeful Marina Vows to Restore Brazil Credibility and Recruit Brightest Minds

Opposition Brazilian presidential candidate Marina Silva said that Brazil’s recession is very worrying and ...

Low Dollar and High Interests Reduces Brazil’s GDP to 2.5%

Brazil’s National Industrial Confederation (CNI) has just announced a reduction in its estimate for ...

Almost Certain to Be Brazil’s Next President, Rousseff Beats Serra in His Own Home State

With Lula’s popularity soaring at about 80%, these are not good times to be ...

Former President Confirms: Brazil Was Ready to Build A-Bomb

Former Brazilian President José Sarney revealed that the military dictatorship that ruled Brazil for ...

White Lie: Poverty in Brazil Has No Color

A little more than a century after the abolition of black slavery in the ...

Brazil Aviation Workers Blame Air Tragedy on Airlines Greed and Government Neglect

Brazil's National Federation of Civil Aviation Workers and central trade unions that represent the ...

How the Dumb Blonde Is Outsmarting the Dumb Portuguese in Brazil

I don’t believe I heard any blonde jokes before the Web made its debut ...