By Lise Alves, Senior Contributing Reporter SÃO PAULO, BRAZIL – The IPCA (Consumer Price Index) in Brazil rose by 1.01 percent in November, according to the IBGE (Brazilian Statistics Bureau) the highest inflation for November since 2002. The rate is 0.19 percent higher than October’s inflation which increased by 0.82 percent. The inflation rate for the first eleven months of the year now accumulates an increase of 9.62 percent, well above the 5.58 percent registered during the first eleven months of 2014. For the twelve months ending in November, the inflation index is at 10.48 percent, well above the inflation target ceiling established by Brazil’s Central Bank, of 6.5 percent per year. The food and beverage sector was the one that registered the highest increase in inflation, rising by 1.83 percent in November in comparison to October. The overall impact on inflation was of 0.46 percent. Potatoes and tomatoes were the villains in November, with increases of over 24 percent in prices. For the second month in a row, according to the IBGE fuel prices significantly influenced the increase in inflation by increasing by 4.16 percent percent during the month. The increase of fuel prices to final consumers hovered around 3.21 percent for gasoline, 9.31 percent for ethanol and 1.76 percent for diesel fuel. In October the government increased gasoline prices at refineries by six percent, ethanol by twelve percent and diesel by four percent. In regards to inflation rates in Brazil’s largest metropolitan areas, Goiania registered the greatest increase in the rate, by 1.44 percent, while the metropolitan area of Brasilia registered the lowest, by 0.66 percent.
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. The latest figures from Brazil's central bank show a sharp increase in consumer prices for food and energy as well as an unexpected rise in retail prices. 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.