Economía 09-08-2017

Brazilian annual inflation falls to lowest since 1999

Brazil's inflation rate was 2.71% in the last twelve months, which is the lowest since February 1999 when it stood at 2.24, according to the Brazilian Institute of Geography and Statistics.

"The Broad Consumer Price Index for the month of July remained at 0.24%, after 0.23% in June, therefore, so far this year inflation is 1.43%, well below the 4.96% recorded in the same period last year, "the agency said." In relation to the last twelve months, the index was 2.71%. "

The objective of the Brazilian Government is to maintain inflation at around 4.5% per year, although there is a tolerance of 1.5 points, which can vary between 3 and 6%.

The economic analysts expected by the Brazilian Central Bank are expecting inflation to end in 2017 at 3.45% (within official targets), well below the 6.29% recorded in the total for 2016.

The fall in prices is mainly due to the economic crisis in Brazil, with 13.5 million unemployed, which causes a decrease in consumption.