This was reported today by the Brazilian Institute of Geography and Statistics (IBGE). Fuels, electricity, rents, coffee and sugar were the main responsible for the jump.
The official inflation of Brazil in 2021 it was 10.06 percent, the highest in the last six years, more than double the goal set by the Central Bank, reported today the Brazilian Institute of Geography and Statistics (IBGE).
Fuels, electricity, rents, coffee and sugar were the main culprits of the Brazilian inflationary jump in 2021.
The advance of the IComprehensive Consumer Price Index (Ipca), the main indicator of inflation in Brazil, is the highest since 10.67 in 2015, when the country was in a severe political, judicial and economic crisis.
The IBGE disclosed the indicator by reporting that inflation in December was 0.73 percent, showing a slowdown against 0.95% in November.
The Central Bank’s inflation target for 2021 had been 3.25 percent with a tolerance of up to 5.25 percent., and it was the first time since 2015 that the monetary authority’s forecast was not met.
Official inflation was higher than the 9.99 percent expected by the financial market.
In 2020, the first year of the pandemic, official inflation had been 4.52 for hundred in the main commercial partner of Argentina.
With this index, Brazil is the third country in the G-20 with the highest inflation, behind Argentina and Turkey.
According to Pedro Kislanov, manager of IBGE, naphtha accumulated a rise of 47.49% in 2021 while ethanol (alcohol fuel for vehicles, cheaper option) soared 67.2%, mainly due to the increase in the price of sugar .
In general, food and beverages rose 7.9%, but the prices that increased the most were those of coffee (50.2%) and refined sugar (47.8%).
Household expenses, including rents and home energy, advanced 13.05%, while clothing rose 10.31 percent.
Since September the Central Bank reported that the inflation target was not going to be met, which is why it raised the basic interest rate of the economy from 2% in January to 9.25% in December, with the prospect that in 2022, the electoral year, it will rise to 11.75 percent.
The Central Bank raises the cost of money and makes it difficult to access credit to reduce inflationary pressures, which, according to the Minister of the Economy, Paulo Guedes, is not just about demand but rather about supply.