The North American Consumer Price Index (CPI) climbed to a high of 5.31% from January to July. Brazil’s IPCA (National Wide Consumer Price Index) reached 4.77% during the same period. Inflation in the United States has already exceeded the Brazilian price index through 2022, according to calculations of the Poder360 outlet.
The Bureau of Labor Statistics released the U.S. data on Wednesday (Aug.10). Here is the full report provided by Poder360.
In Brazil, inflation started earlier than elsewhere and now seems to be turning around earlier as well.
It was already known that Latin America’s largest economy has one of the most coherent central banks in the world. Still, the fact that it maintains its discipline even in times of great crisis is quite extraordinary, especially when you look at what the “big” central banks of the world are doing.
Some people might have to get used to the fact that one of the large countries of the Global South could suddenly establish itself as a trend leader. At least as long as the Bolsonaro government and Economy Minister Paulo Guedes in particular have something to say.
The IBGE (Brazilian Institute of Geography and Statistics) showed Tuesday (Aug. 9) that Brazil recorded the most significant monthly price decline in 42 years in July. This year’s cumulative rate decreased from 5.49% in June to 4.77% in July. During the same period, inflation in the United States was stable at 5.31%. There was no change in the price index in July.
In 12 months, inflation in the United States decreased from 9.1%, the highest level in 40 years, to 8.5%. This percentage is lower than the price index in Brazil. In the year to July, there was a cumulative increase of 10.07%. This is different from the beginning of the year, when inflation in the U.S. was higher than in Brazil.
Even if it loses strength, the U.S. consumer price index is approaching the Brazilian price index. In June, the gap was 2.79 percentage points. In July, it fell to 1.57 percentage points.
With information from Poder360