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    Your email address will not be published.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

    Micro business generates 40% of formal jobs in Rio, Brazil

    Brazilian Businesses Optimistic About Coming Pan American Games

    Micro and small businesses are optimistic regarding the Pan American Games, to be held ...

    Embratur wants goes on overdrive to lure tourists

    Brazil to Lure Tourists in 42 Fairs of 15 Countries in the Next 4 Months

    The Brazilian Tourism Institute (Embratur) will promote Brazil as a travel destination in 42 ...

    Brazil's AMB president, Mozart Valadares

    Brazil’s Supreme Court Message: We’d Better Learn to Live with Corruption

    Just when the AMB (Brazilian Magistrate Association) thought that Brazil has finally decided to ...

    Russians Propose Changes on Brazil’s Space Experiments

    A Russian committee is in Brazil to test the nine scientific experiments that Brazilian ...

    “Moro no Brasil”: Brazil’s Joy and Pain Through Her Music

    "Moro no Brasil," (aka "The Sound of Brazil") Finnish director Mika Kaurismaki’s 2500 mile ...

    Rio flood

    Rio’s Killing Floods a Once-in-5-Centuries Event, Say Brazilian Experts

    Brazil’s rains of January 12, followed by flooding and mudslides that killed over 900 ...

    The Long Goodbye

    Death, which is rarely kind, was its unkindest, this beginning of year, taking away ...

    Lula Tells IMF, Brazil Can Now Walk on Its Own Legs

    President Luiz Inácio Lula da Silva met with the managing director of the International ...