Argentina will suspend sales of corn for export until Feb. 28, the agriculture ministry said on Wednesday, announcing the surprise move as part of the government's effort to ensure ample domestic food supplies.
Brazil’s central bank kept its key interest rate at a record low 2.00% on Wednesday, as expected, but gave the first sign it could soon drop its pledge to keep rates lower for longer as inflation expectations converge toward target.
Producer price inflation in Brazil jumped to its highest on record in October, figures showed on Thursday, led by another month of rising food prices, which will likely stir the debate further on the wider outlook for inflation and interest rates.
Brazilian inflation in October rose to its highest level for that month since 2002, figures showed on Friday, driven by rising food and transport costs and lifting annual inflation to within sight of the central bank’s year-end target.
Brazil’s recent spike in inflation is temporary, central bank President Roberto Campos Neto said, adding, however, that policymakers are monitoring developments closely.
Brazil’s central bank kept its key interest rate at a record-low 2.00% on Wednesday, maintaining its “forward guidance” pledge to keep rates lower for longer and even the possibility of further easing, despite the recent rise in inflation and fiscal risks.
By Steve H. Hanke – In addition to facing an acute Covid-19 crisis, Argentina's deadbeat economy is collapsing, and, as usual, the inflation noose is around Argentines’ necks. Argentina’s official inflation rate for August 2020 is 40.70% per year. And, for once, Argentina’s official rate is fairly close to the rate that I calculate each day using high-frequency data and purchasing power parity theory, a methodology that has long proved its worth when compared with official statistics. Today, I measure Argentina’s annual inflation rate at 37%, but probably not for long — the noose is generally followed by the trapdoor.
Argentina's peso currency plunged further into record low territory after the central bank tightened currency controls. The peso opened almost 0.1% weaker at 75.25 per U.S. dollar, traders said, and the country risk rose 38 basis points to 1,157. The black market peso or blue dollar plummeted 9.7% to open at a new all-time low 145 per U.S. dollar.
Brazil’s central bank kept its key interest rate at a record-low 2.00% on Wednesday, pledging to stimulate the coronavirus-hit economy with “forward guidance” rather than more rate cuts because of the risk to financial market stability that they could pose.
Black beans are up nearly 30%, beef about 40% – Brazilians are facing a skyrocketing rise in food prices, caused by record exports to China and strong domestic demand. This rebound, amid the economic and social crisis caused by the new coronavirus pandemic, has led the president, Jair Bolsonaro, to ask the owners of supermarkets to show patriotism and keep their profit margin as low as possible.