MercoPress. South Atlantic News Agency
Inflation and unemployment confirm Brazilian economy overheated
Labour minister Carlos Lupi targets the creation of 3 million jobs in 2011 March inflation in Brazil accelerated to its fastest rate since November 2008, driven by food, beverages and fuel prices. Consumer prices as measured by the IPCA-15 index rose 6.44% in the year through mid-April, the national statistics agency announced Wednesday in Rio do Janeiro.
Inflation is expected to converge back to the government’s 4.5 % target by the end of next year after interest rate increases and spending cuts and the adoption of measures to curb consumer credit take hold, according to the quarterly inflation report from policymakers.
Food and beverage prices rose 0.79% in April after increasing 0.46% in March, fuelled by higher prices of onions, milk, potatoes, eggs and beans, the agency said.
Gasoline prices rose 4.28% after increasing 0.76% in March, after ethanol prices jumped 16.4% compared with 4.68% the previous month. The bio-fuel accounts for 25% of gasoline sold to consumers in Brazil.
Economists raised their 2011 inflation forecast to 6.29%, from 6.26% a week earlier, according to an April 15 central bank survey of about 100 economists. Economists expect inflation to slow to 5% in 2012, the survey found.
Brazil’s unemployment rate rose less than economists expected in March, reaching the lowest on record for the month, indicating that the economy remains heated.
Unemployment in March rose to 6.5% from 6.4 % in February, the national statistics office said on Tuesday. Latin America’s largest economy is currently “almost at full employment” and faces labour shortages in many industries, Finance Minister Guido Mantega admitted on April 18.
However the Brazilian economy generated 92,675 government- registered jobs in March, the fewest since a seasonal loss of jobs in December, the Labour Ministry said in a report distributed in Brasilia.
“The labour market is still heated, we had fewer jobs because of the Carnival holiday,” Labour Minister Carlos Lupi told reporters in Brasilia. “Interest rate increases may have an effect, but nothing that will change our course, I’m confident we’ll create 3 million jobs this year.”
Brazil created 583,886 government-registered jobs in the first quarter, the ministry said.
Top Comments
Disclaimer & comment rules-
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Read all commentsA Government-registered job is not a 'new' job. It might be, but it might not be.
Apr 21st, 2011 - 12:41 pm 0It might be simply moving a worker from the black economy onto the company books so that he can be declared for taxes (- and, of course, he will receive significant state benefits).
So the company has to pay more, the company pays more in taxes/overheads, the worker pays taxes, and the government increases its monthly tax revenues.
In theory this should produce better services for the community, but all the man in the street sees is 'service nett of deductions' - frequently no improvement at all.
Geo, rather then bitching, you should run for office.
Apr 21st, 2011 - 12:58 pm 0Been there, done that.
Apr 21st, 2011 - 02:06 pm 0Where & when I served there was no salary attached;
people were elected to the posts and performed their tasks as a civic duty alongside to 'day-job'.
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