19025
Brazil President Anguished Over Inflation
World Economy

Brazil President Anguished Over Inflation

Brazilian President Dilma Rousseff said she was “quite anguished” over the country’s rising inflation rate and said her government would do “the possible and the impossible” to rein in prices.
In an interview with Globo TV broadcast on Saturday, she said the government needed to conclude its fiscal adjustment plan as fast as possible to overcome a “temporarily difficult” economic situation, Reuters reported.
“I’m quite anguished over inflation, I believe this is one of the things that worry me the most,” Dilma said. “I know this is temporary but I also know that ... it affects people’s daily lives.”
Brazil’s consumer inflation hit an 11-year peak of 8.47 percent in May and economists say it may accelerate further before easing under pressure from an aggressive monetary policy campaign.
To bring inflation back to an official 4.5 percent target by the end of 2016, the central bank is expected to further raise the benchmark Selic rate in coming months.
Brazil’s interest rates are already at 13.75 percent, the highest since January 2009.
“I’m worried because I think we’ll have to make a huge effort. And I want to say this: we will do the possible and the impossible for Brazil to have a very stable inflation rate again, within the target,” Rousseff said.
She said inflation was expected to come down by the end of the year but also cautioned that this depended on factors outside the government’s control.

 Above Target
Brazilian inflation picked up unexpectedly in May as food and electricity prices jumped, raising the odds of further interest rate hikes by the central bank despite a likely recession.
Brazil’s benchmark IPCA consumer price index rose to an 11-year-high of 8.47 percent in the 12 months through May, well above the government’s 4.5 percent inflation target, statistics agency IBGE said.
Month-on-month, consumer prices rose 0.74 percent from April, up from an increase of 0.71 percent in April and above market expectations of 0.59 percent. Higher food prices were the biggest surprise, since May is customarily a month in which food price inflation eases, economists said. Bad weather propelled tomatoes and onion prices more than 20 percent higher.
Electricity rates also spurred inflation in May, IBGE said, climbing more than 10 percent in coastal cities such as Recife and Salvador.
Brazil’s already-elevated inflation has accelerated while the economy tumbles, costing hundreds of thousands of jobs in recent months.
Economists widely see the economy sliding into recession this year as policymakers curb spending and raise interest rates.
At 13.75 percent, the central bank’s Selic rate is the highest benchmark interest rate among the world’s 10 largest economies.

Short URL : http://goo.gl/mXllC7

You can also read ...

Venezuela Devalues Currency by 95 Percent
Venezuela devalued its currency by about 95% ahead of the Aug...
The average annual salary for K–12 public-school teachers is roughly $58,000, and they typically spend a sizable chunk  of that on classroom supplies integral to their jobs
Airbnb, the popular platform that lets people rent out their...
Nigeria CB Reports $91b FX Inflow in 2017
The Central Bank of Nigeria, said the aggregate foreign...
S&P, Moody’s Lower Turkey Ratings
Two major global ratings agencies lowered Turkey’s ratings Aug...
Egypt Keeps Rates Steady
Egypt’s central bank left its main interest rates unchanged,...
Argentina Says Poverty to Rise as Economy Slumps
More Argentines are likely living in poverty now compared with...
China News Apps Co. Files for US IPO
Chinese content aggregator Qutoutiao Inc, which is backed by...
Russia’s largest electronics chain, M. Video, estimates that about a fifth of its products are bought with credit  or on installment plans as people are more confident about the future.
Russian consumers are borrowing like the boom times are back...

Trending

Googleplus