Good morning! Today, the latest inflation numbers. Lula and the climate. And the new center of gravity in Brazilian politics.
☕ If you like our work and want to give us an extra boost, you can fill up our reporters’ coffee mugs. Supporters get exclusive perks! Find out more.
Inflation goes up again
After a three-month deflationary streak, consumer prices went up in October, as reported this morning by the Brazilian Institute of Geography and Statistics. Monthly inflation reached 0.59 percent — above market expectations of 0.49 percent.
- Still, overall price hikes continue to cool off on an annual basis, albeit at a very slow pace. The IPCA benchmark inflation index dropped from 7.17 to 6.47 percent in 12 months.
What is happening. October inflation was mainly driven by clothing, health, and food items. Transportation costs also went up last month, in yet another indication that feel-good measures by the federal government to reduce fuel prices before the election are beginning to wear off.
- Eight of the nine surveyed items saw price hikes. “Food and transportation, the two groups with the biggest weight on the index, receded in September but went back up again in October,” said Pedro Kislanov,...