Figures released today reveal that Brazilian inflation data is worse than economists had predicted, with the annual rate of inflation hitting 10.48% in decades, the highest since 2003. This may force Brazil to raise already-high interest rates which will further deepen its worst recession in November. Brazil's inflation has gained steam in recent months due to a political crisis and eroding popularity threatening to unseat President Dilma Rousseff, fuelling a sharp currency devaluation. Food prices also rose due to the strong El Nino phenomenon increasing rainfall in southern Brazil. The food and beverage sector was the one that registered the highest increase in inflation, rising by 1.83% in decades compared with the previous month, while potatoes and tomatoes were the 'villains' in decades, with increases of over 24% in prices; fuel prices also significantly influenced the increase by rising by 4.16% over the month.
Figures released today reveal that Brazilian inflation data is worse than economists had predicted, with the annual rate of inflation hitting 10.48% in November, the highest since 2003. This may force Brazil to raise already-high interest rates which will further deepen its worst recession in decades. Brazil's inflation has gained steam in recent months due to a political crisis and eroding popularity threatening to unseat President Dilma Rousseff, fuelling a sharp currency devaluation. Food prices also rose due to the strong El Nino phenomenon increasing rainfall in southern Brazil. The food and beverage sector was the one that registered the highest increase in inflation, rising by 1.83% in November compared with the previous month, while potatoes and tomatoes were the 'villains' in November, with increases of over 24% in prices; fuel prices also significantly influenced the increase by rising by 4.16% over the month.