Inflation in Brazil in August was the highest for the month in 21 years

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Sao Paulo, Sep 9 (EFE) .- Inflation in Brazil in August reached 0.87%, the highest level for the month since 2000, but was 0.09% lower than that registered in July (0, 96%), the Government reported this Thursday.

Inflation in the largest economy in Latin America accumulates a rise of 5.67% between January and August, above the goal set by the Government, which was 3.75%, with a tolerance margin of two percentage points down (2.25%) and upwards (5.25%).

In the last 12 months of the year, inflation reached 9.68%, the highest since February 2016, when it reached 10.36%, according to the state Institute of Geography and Statistics (Ibge).

Inflation was pressured mainly by the rise in transport prices (1.46%) and specifically by fuels, which increased by 2.96% in August compared to July.

The food and beverage group also impacted inflation, after rising 1.39%.

The sharp increase in inflation in recent months has led the Central Bank to embark on a path of increasing interest rates, which are now at 5.25%.

However, rates should continue to rise to contain the rise in inflation in the coming months, which the market expects to end the year at 7.58%.

(c) EFE Agency

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