Business

Brazil braced for a second wave of inflation

Food prices rocketed during 2020, but another slew of inflation is expected for this year in private healthcare and schooling

inflation brazil coronavirus crisis
Photo: Anton Watman/Shutterstock

When inflation in Brazil began gaining steam in 2020, attention turned to segments where demand increased — or remained the same — during the pandemic, namely food and raw materials. After eye-watering rises in prices of necessities, the end of the government’s coronavirus emergency salary is likely to see consumption fall and thus bring inflation back under control. However, services are set to see significant price increases in 2021, meaning that Brazilians could be on the cusp of a “second wave” of Covid-19-related inflation.

The question is: how big will it be, and will the population’s pockets be...

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