Brazilian consumer prices index IPCA jumped 1.25 percent in October, the highest for the month since 2002 — when Brazil grappled with the uncertainty of that year’s election, which would bring a center-left government to power for the first time. October’s result takes the 12-month inflation rate to an eye-watering 10.67 percent.
The results were worse than markets’ expectations. According to Reuters, the median prediction among analysts was 1.05 percent.
Fuel prices were the main force pushing October inflation upward, with a 3.21-percent rise last month. Over the past 12 months, fuel has gotten 45 percent more expensive in Brazil.
As today’s edition of our Brazil Daily newsletter explains, high-income families are beginning to feel the pinch of inflation — which had initially punished poor families much harder, with food and energy prices going through the roof.
On Tuesday, Mines and Energy Minister Bento Albuquerque noted that the successive rises in fuel prices “will affect the country’s economic activity” but stressed that altering oil major Petrobras’ pricing policy is not the solution.