For its part, the food and beverages group suffered an inflation of 1.39%, largely due to the rise in food prices in households (1.63%), mainly due to higher prices for ground coffee (7, 51%), fruits (3.9%) or meat (0.63%), among other products.

The market projects that the IPCA will end the year with a rise of 7.58%, well above the inflation target of 3.75%, and that in 2022 it will drop to 3.98%.

The state of the economy

Currently, Brazil is one of the countries with the highest inflation rates in Latin America. In this scenario, the Central Bank of the Latin American country decided to start a cycle of interest rate hikes in May for the first time in six years. After several monetary policy meetings, the institution has left the ‘Selic rate’ at a level of 5.25%.

Yesterday, Brazil’s main stock index plunged nearly 4%, its biggest daily decline in six months, while the real also plunged nearly 3%, in a session that reflected concerns about the economic agenda. of the country in the face of the increase in political-institutional tensions.

The Brazilian president, Jair Bolsonaro, criticized the country’s Supreme Federal Court (STF) on Tuesday and questioned the integrity of next year’s elections, on a day in which his supporters demonstrated in major cities, amid intense tensions in the most democratic democracy. largest in Latin America.

The Bovespa closed with a fall of 3.8% to 113,451.50 points, the lowest close since March 24 and the largest daily percentage loss since March 8. The real, meanwhile, sank 2.8% to 5.3236 units per dollar, its biggest daily percentage decline since June 2020.

Local risk assets “will not even be able to count on external good humor to alleviate the fear of the various uncertainties that the country is experiencing,” Víctor Beyruti, economist at Guide Investimentos, told reporters.

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