A private university study Getulio Vargas Foundation (FGV) indicated that Brazil should have deflation in the Extended Consumer Price Index (IPCA) July and that this situation will probably be repeated in August.
The index for the fourth week of July taken by the FGV had a deflation of 1.19%.
In June 1998, Brazil had the largest monthly deflation (-0.51) in history since the implementation of the Real Plan.
Food prices on the rise
On August 9, the official inflation index for July will be released by the Brazilian Institute of Geography and Statistics (IBGE).
The average price of fuels returned to the levels of August 2021 with the tax cut, since the government avoided changing the policy of international price parity of the state oil company Petrobraswhich is generating windfall profits for private shareholders.
Analysts indicate that this reduction should not include food priceswhich continue to rise.
A third of the Brazilian population cannot buy food to eat daily, according to a survey by the institute Datafolha published on Tuesday.
On Monday, in the Central Bank’s weekly bulletin Focus, the financial market reduced the forecast for official inflation this year from 7.30 to 7.15%, while for 2023 it went from 5.30 to 5.33%.
The official goal is an inflation of 3.50% in 2022 and 3.25% next year, in both cases with a 1.5% tolerance.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
