Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brazil's inflation hits highest for April in 26 years, +12.1% in 12 months

Economy May 11, 2022 11:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A worker attends a client at a gas station in Rio de Janeiro, Brazil, September 9, 2021. REUTERS/Pilar Olivares

By Marcela Ayres

BRASILIA (Reuters) -Brazil's inflation slowed in April but still posted the steepest rise for the month in 26 years, pushing the 12-month figure to over 12% amid continued pressures on food and fuel, official figures showed on Wednesday.

Consumer prices as measured by the benchmark IPCA index rose 1.06% in April, slightly above the 1.0% increase forecast by economists in a Reuters poll, but lower than the 1.62% increase seen in March.

According to the statistics agency IBGE, the monthly result was again driven by the rise in food and beverages (+2.06%), and transport (+1.91%), groups that have been impacted by skyrocketing commodities and disrupted supply chains in the wake of the Russia-Ukraine war.

Eight of the nine groups surveyed showed increases in April, reinforcing the spread of inflation in Latin America's largest economy. Only expenditures with housing fell (-1.14%) due to cheaper energy tariffs.

In the 12 months through April, prices were up 12.13%, against 12.07% expected in the poll, and higher than the 11.3% print seen through March.

That is even further from this year's official target of 3.5%.

Deteriorating inflation has made economists worsen their outlooks not only for 2022, but also for next year, which led the central bank to signal a likely interest hike in June, after already raising rates to 12.75% from a 2% record low in March 2021.

The latest figures point to a broad-based increase in price pressures, said William Jackson, Chief Emerging Markets Economist at Capital Economics, who expects additional 75 basis points of hikes over the coming months, to 13.5%.

Felipe Oliveira, an economist at MAG Investimentos, said that inflation should slow down due to cheaper electricity and a lower increase in food prices from June, the harvest season.

But he pointed out that gasoline is about 20% below international prices, with possible adjustments helping to keep inflation high, "although below the rates observed in recent months".

Brazil's inflation hits highest for April in 26 years, +12.1% in 12 months
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email