INPC and IPCA: Brazil has the third highest inflation rate in the Americas – 11/05-2022 – Market

Brazil’s consumer inflation in April remained among the highest in the Americas, behind only Venezuela and Argentina, countries that were already experiencing uncontrolled inflation before the pressures from the pandemic and the war in Ukraine.

The consumer price index has reached 12.1% YTD in Aprilaccording to IPCA data released on Wednesday (11) by IBGE (Brazilian Institute of Geography and Statistics).

In Venezuela, the domestic index accumulated 222% in the same period. In Argentina, it has accumulated 55% through March (there is still no data for the last month).

Paraguay, Jamaica, and Chile complete the list of countries in the region with double-digit rates. The United States, which posted 8.3% cumulative inflation through April, ranks 10th, according to a survey conducted on the Tradingeconomics platform.

Although it is widespread in almost all countries, high inflation reached Brazil earlier and was more resistant here, which was an additional concern for President Jair Bolsonaro’s (PL) re-election plans.

This is Wednesday after Pinto Albuquerque’s resignation The head of the Ministry of Mines and Energy said that “the Brazil was one of the countries with the lowest prices for things“.

Among the G20 economies, Brazil recently lost the third place among the countries with the highest inflation to Russia, which is suffering from war-related sanctions. Within this group, the country now ranks fourth, after Turkey and Argentina as well.

G-20 inflation averaged for data released in April, at 6.6%, excluding Turkey. With inflation of 70% at 12 months, the country pulls the average down to nearly 11% when sampled.

Developed countries have suffered the most because of fuel prices and other items related to energy supply. Indeed In addition, emerging countries suffer from the food issue.

Central banks react to rising prices by raising interest rates

Many central banks have responded to inflation and raising interest rates – and Brazil is no exception. Currently, the country has the highest annual interest rate (6.69%), minus inflation expectations, according to The order of real interest Compiled by MoneYou portal and Infinity Asset Management.

The list includes 40 countries. On average, the real interest rate remains negative across these countries.

The deterioration of the external economic scenario, which pushed the dollar higher again, has frustrated expectations that inflation will start to decline in May, and prompted the central bank to Pointing to new interest rate hikes this year.