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 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.
Global food prices were steady in September, as lower sugar prices were offset by increased quotations for vegetable oils and meat. The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 170 points in September, virtually unchanged from August and 3.3 per cent higher than in the same month in 2018.
Global food prices rose for the fifth consecutive month in May, pushed up by rising prices of cheese and maize due to adverse weather conditions. The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 172.4 points in May, up 1.2 per cent from the previous month while still 1.9 per cent below its level in May 2018.
Global agricultural food commodity prices fell in September due to growing inventories of key staples. The FAO Food Price Index declined 1.4% from August and is now 7.4% below its level during September 2017.
Global agricultural food commodity prices rose in May, with dairy prices jumping significantly. The FAO Food Price Index averaged 176.2 points during the month, up 1.2% from April.
Food prices may ease in 2012 due to a slowing global economy, though no drastic drop from high levels is expected, the new director-general of the UN's Food and Agriculture Organisation said on Tuesday.
Food price volatility featuring high prices is likely to continue and possibly increase, making poor farmers, consumers and countries more vulnerable to poverty and food insecurity, the United Nations' three Rome-based agencies said in the global hunger report published Monday.
Brazil’s inflation accelerated for the 12th straight month in August to its fastest annual rate since 2005. Consumer prices, as measured by the IPCA index, rose 0.37% in August from the previous month, the national statistics agency reported on Tuesday. Prices rose 7.23% from a year ago, the highest since June 2005.
Annual food inflation in Latin America and the Caribbean reached 8.7% in July almost one full percentage point above the previous month according to the Food and Agriculture Organization, FAO.