Inflation in Brazil reached 10.25% in September

The consumer price index rose 1.16% in September (the highest value for that month since 1994) and has accumulated a 6.90% increase since the start of the year., reported the IBGE.

The historic drought that affects the operation of hydropower plants and forces them to resort to more expensive sources of energy has had a significant impact.

Jair Bolsonaro

The President of Brazil, Jair Bolsonaro.

Telam

“Eight of the nine items of products and services analyzed increased in September, with a peak for the housing sector (2.56%), which was driven by the 6.47% increase in the electricity bill” , detailed the institute.

Cumulative inflation in twelve months has not reached double digits since February 2016, whereas it amounted to 10.36%.

The consequent rise in prices in Latin America’s largest economy has pushed many families into precarious situations, with difficulty coping with the rising cost of basic items such as food and transportation.

The 6.90% cumulative increases between January and September 2021 greatly exceed the official inflation target set at 3.75%, and its ceiling of 5.25%.

Inflation last month recorded the worst August in 21 years, rising 0.87% and year-over-year inflation was 9.68%.

The president of the Central Bank of Brazil (BCB), Roberto Campos Neto, estimated a few days ago that “September must be the peak of inflation in 12 months” then “a fall” will begin.

The market expects inflation to reach 8.51% by the end of this year, according to the latest Focus survey released by the BCB.