BRASÍLIA (BDCi) – The month of April saw a surge in Brazil’s inflation, mainly due to a spike in food prices a few months ago.
A Wall Street Journal survey of economists shows that 12-month inflation rose from 6.15% at the end of March to 6.42% at the end of April.
This estimated 12-month inflation would be the country’s highest since June 2013, when inflation was at 6.7%.
The central bank has raised key interest rates nine times within the last year and its target is 4.5% inflation, with a tolerance band of minus or plus 2 percentage points.
Finance Minister Guido Mantega says the recent increase in prices was expected and that inflation for May and June will be lower.
Brazil’s official inflation data will be released this Friday (9).
By: Diego Díaz Source: Wall Street Journal Photo: Wikipedia 7 May 2014
7:10 a.m. P.D.T.