Brazil Inflation ‘Among Highest in World’: Daily

By Ben Tavener, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The current rate of inflation in Brazil is among the highest in the world, according to information published by the Banco Central (Central Bank). In the twelve months to August, of the countries featured in the report only India and Russia had higher inflation rates, both at around eight percent, in comparison to Brazil which has reached 7.33 percent.

According to Carlos Hamilton Araújo from the Banco Central, it shows that Brazil has seen inflation rise in the past year which, he said, was something that needed to be addressed, but he pointed out that Brazil was not alone:

“The world has been inflating over the last twelve months […], but looking ahead, we are anticipating a global ‘deflation.’”

According to the report, inflation in China is running at around six percent; in the U.S. it is under four percent, as are a number of Latin countries, including Chile, Colombia and Mexico.

Brazil’s inflation forecast is 6.4 percent this year, slipping to five percent in 2012.

The Banco Central also revealed that it had reduced its GDP (Gross Domestic Product) forecast for the year from four to 3.5 percent, citing reasons such as “political decisions implemented since the end of 2010” and, chiefly, “the deterioration of the global [economy].”

Read more (in Portuguese).

* The Rio Times Daily Update is a new feature we are offering to help keep you up-to-date with the major news as it happens.