03/01/2011NEWS IN ENGLISH – IPC-S shows 2010 inflation reached 6.24%
Marli Moreira and Kelly Oliveira Reporters Agência Brasil
São Paulo and Brasilia – Brazil’s Weekly Consumer Price Index (“Índice de Preços ao Consumidor Semanal – IPC-S”) rose 0.72% in December, bringing cumulative inflation for the year to 6.24%, compared to 3.95% in 2009.
The sharp rise is being blamed on food prices that were up a cumulative 9.85% for the year.
However, it must be pointed out that the government’s inflation yardstick is another index, the Broad Consumer Price Index “(Índice de Preços ao Consumidor Amplo – IPCA”). This year’s official inflation target is 4.5%, based on the IPCA. The latest Central Bank weekly market survey (“Focus”) reports financial analysts are now forecasting a 5.32% rise in inflation as measured by the IPCA this year (the government gives itself wiggle room in its inflation targets of give or take two percentage points, so 5.32% is well below the upper limit of 6.5%).
Allen Bennett – translator/editor The News in English
Link – Inflação medida pelo IPC-S fecha o ano em 6,24%
Link – Projeção de analistas para a inflação oficial este ano chega a 5,32%