The main impetus was given food and drinkswhich registered in the month a up 0.72%.
Also the rises in the transportation items impacted (0.58%)particularly those plane ticketsand the health (1.16%)among which personal hygiene products and medical insurance stood out.
Food and transport are the two sectors with the greatest weight in the inflation index Brazil and are what most influenced the increase in October. Both had also shown declines in the previous month.
Transport, “in addition to the 27.38% increase in ticketsthe fall of 1.27% in fuels was also important, less than that registered in the previous month, when the fall was 8.5%”, highlighted the research manager of the IBGE, Peter Kislanov.
The fall in fuel prices was greatly driven by the measures promoted by the President of Brazil, Jair Bolsonaro, to eliminate state taxes on fuels, which had an impact on their collection.
Thus, inflation in Brazil interrupted three consecutive months of inter-monthly falls of 0.68% in July, 0.36% in August and 0.29% in September.
The goal established by the Central Bank of Brazil for this year is 3.5%, with a margin of 1.5 points up or down. The market, however, projects that prices will end up rising 5.63%, more than the ceiling set by the 5% target.
The inflation data leads the monetary entity to consolidate the policy of raising interest rates to 13.75% per year, a rate that it has already decided to maintain in recent meetings, before the slowdown in prices occurred.
These data are the first known after the triumph of the president-elect Luiz Inacio Lula da Silvawho will take office on January 1, 2023.
Source: Ambito
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