Brazil records highest inflation in October since 2002

Brazil recorded an inflation of 0.86 per cent in October, the highest rate for the month since 2002, official figures revealed.

According to the Broad Consumer Price Index (IPCA) released by the state-run Brazilian Institute of Geography and Statistics (IBGE) on Friday, prices have accumulated an increase of 2.22 per cent in the South American country over the course of the year, reports Xinhua news agency.

The Brazilian government has set an inflation target of 4 per cent for this year, with a tolerance margin of 1.5 percentage points.

Of the nine categories analyzed, eight showed an increase in prices, led by food and beverages with an increase of 1.93 per cent, along with household items (1.53 per cent), transport (1.19 per cent), and clothing (1.11 per cent).

“What has driven inflation in the last two months, mainly, is food,” the IBGE said in its report, adding that “some foods in particular have pushed this rise”, such as rice, soybean oil and meat.

The report said that the devaluation of the Brazilian real against the US dollar as well as the reactivation of economic activity amidst the coronavirus pandemic have caused an increase in prices.

In 2019, Brazil registered inflation rate of 4.31 per cent, slightly higher than the goal set by the government of 4.25 per cent and the highest rate since 2016.

Regarding the pandemic, Brazil currently accounts for the third highest number of Covid-19 cases and the second highest number of deaths.

As of Saturday, the country’s overall caseload and death toll stood at 5,631,181 and 162,015, respectively.