MercoPress. South Atlantic News Agency
Brazilian central bank concerned about 'persistent inflation' reveal minute
Reinforcing the upward trend in the cost of living is a hike in utility and fuel prices amid a severe drought that is reducing output from hydroelectric plants. Brazil's Central Bank is concerned about inflation, now running at 6.75%, according to the minutes of last week meeting of the policy committee, released on Thursday.
Monetary policy must remain “particularly vigilant” in the months ahead to prevent “persistent” high inflation, the bank said after raising the benchmark interest rate to 11.25%.
Prices in Brazil are “realigning” with international prices due to the recent decline of the Real against the dollar, which has had a direct impact on inflation, the statement said.
Reinforcing the upward trend in the cost of living is a hike in utility and fuel prices amid a severe drought that is reducing output from hydroelectric plants.
An additional factor “generating inflationary pressures” is the rise in the minimum wage, though to a lesser degree than in the past, the Central Bank said.
Consumer spending and business investment are on the rise, which, along with an expected increase in exports thanks to the depreciation of the Real, creates a “favorable scenario” for economic recovery, the bank said.
Brazil's economy shrank in the first and second quarters of this year, meeting the technical definition of a recession.
The government expects growth of 0.9% for this year as a whole, while the Central Bank forecasts an expansion of 0.6% and private analysts are projecting growth of only 0.24%.
Top Comments
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Read all commentsTake your pick from THREE estimates for growth 'this year as a whole'.
Nov 08th, 2014 - 03:33 pm 0AL three will be lower when adjusted for inflation, the lowest will in fact be negative.
Tell DumbAss Dilma to stop fucking with Mr. Market otherwise he will come back to bite her, AGAIN.
Her mate in Caracas hasn't got a clue either.
Nov 08th, 2014 - 04:28 pm 0Inflation at 60%.
So Maduro gives the military a 45% payrise and gives the 'workers' a 15% raise in the minimum wage.
He then claims that venezuelans 'enjoy' the highest minimum wage in Latin America of US$776/month.
This is a lie, based on the official exchange-rate of 6.3BSF/$.
The reality is actually closer to US$48/month.
The 'dolar parallelo' is currently trading at BSF102/$.
The queues for chicken/cooking oil/shampoo stretch to 3 hours now. The first people to exit the stores immediately go to the street market and re-sell for 10xprice. Perhaps these people are the 'economic terrorists' that the Left in Lat Am are always complaining about?
Life in a socialist paradise. Some people just don't get it.
@ 2 ilsen
Nov 08th, 2014 - 06:28 pm 0“Life in a socialist paradise. Some people just don't get it.”
Yes, the poor sods with no connections to MADuro and his 'bodyguard' by the sound of it.
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