Prices in Brazil rise 0.75 percent in January, the highest rate in 20 months

8 February 2010

Brasilia, Brazil, 8 Feb – Prices in Brazil rose 0.75 percent in January, more than double the rate recorded in December (0.37 percent) and the highest increase since May 2008, the Brazilian Institute of Geography and Statistics (IBGE) has indicated.

The official reference indicator for measuring price variation, the Ample Consumer Price Index (ACPI), was above the January 2009 figure (0.48 percent) as well, the IBGE also reported on Friday.

In the last 12 months, inflation rose to 4.59 percent, a figure slightly above the Brazilian government’s forecasted 4.5 percent per year.

Brazil’s Minister of Economy, Guido Mantega, said last Tuesday that the government was monitoring the performance of inflation and might raise interest rates to hold down prices.

January’s average 1.13 percent increase in prices for the food and beverages category, a major factor in the ACPI calculation, was mainly responsible for the index’s rise during the period. (macauhub)