By Jeffrey Lewis
In September, Brazil experienced a slight acceleration in inflation due to an increase in gasoline prices and a slower decline in food prices compared to the previous month.
Rising Consumer Prices According to the Brazilian Institute of Geography and Statistics (IBGE), consumer prices rose by 0.26% in September compared to August. On an annual basis, prices increased by 5.19%. In August, prices saw a 0.23% rise and a 4.61% increase from the previous year.
Impact of Fuel Prices Petrobras, the state-controlled oil company, raised its fuel prices in mid-August, which had a direct impact on the inflation index. Gasoline prices increased by 2.8% in September compared to August, while diesel fuel prices jumped by 10.1% during the same period. As André Almeida, the IBGE’s manager of the inflation report, pointed out, gasoline holds significant weight in the inflation index, making this increase a major contributing factor to September’s results.
Food Prices Decline Although food prices continued to decline for the fourth consecutive month, the pace slowed down compared to August. The IBGE reported a 0.71% decrease in food prices in September, following a 0.85% decline the previous month.