Inflation predictor suggests that prices will keep rising in Brazil

Food prices were the main inflation drivers in Brazil this month. Photo: Luiz Barrionuevo/Shutterstock

Consumer prices index IPCA-15, Brazil’s mid-month inflation rate (and reliable predictor of official rates) was up 0.95 percent in March. It was the highest for the month since 2015 — price raises continue at full steam as production chains remain disrupted and the war in Ukraine put pressure on food prices.

The IPCA-15 index stands at 2.54 percent for Q1 2022 — against 2.21 percent a year ago.

All product groups followed by the Brazilian Institute of Geography and Statistics became more expensive in March — especially food and beverages. Several products became so unaffordable for low-income families that Sensacionalista — a satirical website which is a Brazilian version of The Onion — joked that carrots and a liter of gasoline have become “the perfect marriage gift for Brazilians.”

Meanwhile, recent hikes in fuel prices led transportation costs to increase by 0.68 percent last month.

Brazil’s official inflation rate for March will be released on April 8.

Gustavo Ribeiro

An award-winning journalist, Gustavo has extensive experience covering Brazilian politics and international affairs. He has been featured across Brazilian and French media outlets and founded The Brazilian Report in 2017. He holds a master’s degree in Political Science and Latin American studies from Panthéon-Sorbonne University in Paris.