Below Europe, Brazil has the 6th lowest inflation in the G20 in 2022

The fee is decrease than that of the European Union, United Kingdom, Canada, United States and France this yr

Brazil has the 6th lowest inflation in the G20 in 2022. The nation’s inflation fee is 4.4% in the cumulative fee from January to August, which is decrease than nations akin to the European Union (7.6%), the United Kingdom (7 .1%). ) and the United States (5.4%). The examine was carried out by Austin Rating’s chief economist, Alex Agostini, at the request of the 360 management.

The nation is much from the highest charges, akin to Argentina (55.7%), Turkey (47.8%) and Australia (10.5%) in 2022. The IPCA (Extended National Consumer Price Index) January to August is low increased than different international locations and areas with traditionally low charges, akin to Germany (7%), Canada (6.4%) and France (5.1%).

Only South Korea (4.4%), Indonesia (3.6%), Japan (2.8%), Saudi Arabia (2.6%) and China (1.6%) have decrease charges than Brazil. . Economists hear that 360 management establish 2 components for the discount of the Brazilian value index: 1) the fall of taxes, akin to ICMS, for instance; 2) the enhance in rates of interest by the Central Bank, in March 2021, the outcomes can be launched now.

Some international locations didn’t present will increase in August, akin to South Africa, Saudi Arabia, Australia, Canada and Japan. Top economist Austin Rating made the month-to-month August forecast for the nations.

Search for product launch schedule:

  • South Africa (21.Sep.2022);
  • Saudi Arabia (September 16, 2022);
  • Canada (September 20, 2022);
  • Japan (19 September 2022);
  • Australia (not discovered).

Tatiana Nogueira, economist at XP, says that IPCA values ​​must be decrease for the coming months. This will give Brazil extra alternatives, he stated. “On the different hand, in Europe, increased charges will observe, because of the vitality disaster“, he stated.

However, meals costs ought to stay sturdy to suppress inflation. Carlos Alberto Ramos, professor of Economics at UnB (University of Brasília), says that it’s a scenario that may proceed to affect the enhance in income. “Due to conflict and climate circumstances. High meals costs are right here to remain for a very long time“, stated.

Brazil’s development fee is the lowest amongst main Latin American international locations in 2022. enrich Venezuela, with a fee of 60.4% from January to August.

In 12 months, nonetheless, the nation’s inflation was 8.7 p.c. The threshold is 3.7 factors above the specified ceiling. Analysts anticipate the fee to drop to six.4% by the finish of the yr, based on the Focus Bulletin of the BC (Central Bank).


In August, Brazil registered a decline –a fall in the value index– of 0.36%. This is the second consecutive month-to-month fall in the IPCA (General Consumer Price Index). It was additionally the largest drop for August since 1998.

In the 12-month interval, the fee went from 10.07% in July to eight.73% in August, the lowest stage since June 2021. The president of the B.C. (Central Bank), Roberto Campos Neto, stated on August 23 that the 2022 inflation can be 6.5% or much less.

The inventory market was down for the eleventh week in a row, pointing to Brazil’s inflation this yr. The estimate for the IPCA decreased from 6.61% to six.40%. The percentages had been introduced by the Central Bank in the Focus Bulletin.

To management increased inflation, BC will increase the key rate of interest, the Selic, to 13.75% every year on August 3, 2022. Bank charges are at their highest stage since January 2017. The final time it was above this stage was in November 2016, at 14% yearly.

The Copom (Monetary Policy Committee) left the door open to elevating the Selic to 14% a yr in September and stated the fee would stay unchanged for a while. “very long time” to manage inflation.

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