Roberto Campos Neto, head of Brazil’s Central Bank, declared this afternoon that the country’s spiraling inflation should peak between April and May. At the beginning of 2021, rising consumer prices were brushed off by authorities as a temporary blip — but one year on, inflation is still increasing.
Brazil’s 12-month inflation has been in the double digits since September, and the Central Bank recently said its trajectory remains uncertain. The bank’s Monetary Policy Committee warned that “uncertainties regarding the fiscal framework” could allow prices to continue their upward trend and force steeper benchmark interest hikes.
Inflation has been particularly brutal on poor consumers, as prices of basic items such as utilities and food products have skyrocketed. Fearful of the impact it will have on the presidential election, President Jair Bolsonaro has tried to come up with ways to artificially hold fuel fares down — but experts believe such measures could have the opposite effect.