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Even with recent deflation, Brazilian energy prices are among the world’s highest

Compared to per capita income, only Colombia spends more on fuel and electricity than Brazilian consumers. Experts are critical of nebulous extra charges and government short-sightedness

Even with recent deflation, Brazilian energy prices are among the world's highest
Photo: RHJPhtotos/Shutterstock

Brazil’s July inflation reading flagged an overall 0.68-percent deflation, mainly the result of lower energy prices — a direct consequence of the government’s moves to cap state-level taxes on fuels and push utility bills down. 

For energy as a whole, 12-month inflation is now down to 3.3 percent. But Brazil’s energy costs remain among the world’s highest when adjusted for per capita income — only Colombia pays proportionately more than Brazilians for electricity and gas. 

For instance, while Brazilian families have a monthly budget that is ten times smaller than their American or Japanese counterparts, they pay twice as much...

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