Economy

Brazil’s inflation is on the rise. When will it return to normal?

inflation supply crisis brazil
The supply crisis of May pushed Brazil’s inflation up
inflation supply crisis brazil
The supply crisis of May pushed Brazil’s inflation up

Brazil experienced, in June 2018, its highest monthly inflation since January 2016. When we consider the rate only for months of June, it was the biggest spike since 1995 – and the second-highest in the history of the Brazilian Real, a currency created back in 1994.

June is traditionally a month of low inflation in Brazil. Prices tend to go down over the first half of the year, rising only as the Christmas season approaches. Last year, for example, prices actually went down in June, as the inflation rate was -0.23 percent. This time around, though, the National Consumer Price Index – Extended (IPCA) was up by 1.26 percent.