Brazil’s Inflation Accelerates on Rising Fuel Costs, Slower Food Price Decrease
Brazil’s inflation rate accelerated in September due to a hike in gasoline prices and a slower decline in food costs. The Brazilian Institute of Geography and Statistics (IBGE) reported a 0.26% consumer price increase from August and a year-on-year rise of 5.19% on Wednesday.
Petrobras, the state-controlled oil company, initiated a fuel price increase in mid-August which led to a 2.8% rise in gasoline prices and a significant 10.1% surge in diesel prices for September. André Almeida, who is responsible for the inflation report at IBGE, emphasized the considerable impact of gasoline costs given its substantial weight in the inflation index.
Food prices in Brazil have been falling for the fourth consecutive month. However, the rate of decrease slowed to 0.71% from 0.85% in August, contributing further to the acceleration of the country’s inflation rate.
