Tag: Inflation
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After Two Months of Contraction, Brazilian GDP Remains Stable in May
After two months of contraction, the Brazilian economy remained stable in May. According to the metric from the Central Bank (IBC-Br), the activity had a modest rise of 0.03% in May compared with April, when it had shrunk 0.88% (revised from 0.84%), in the seasonally adjusted series. May result was below the estimated by analysts.…
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Disposable Income Drops 10% in 6 months in Brazil
The combination of high inflation with layoffs and wage loss caused a downturn of unprecedented proportions in disposable income for consumption in Brazil. The Monthly Employment Survey (PME) of IBGE shows that real wages decreased by 10% between November 2014, peak of recent years, and last May. In the crisis of 2003, a decline of…
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COPOM raises Selic, Brazilian interest rate, to 13.75% per year, highest since December, 2008
The Brazilian committee for monetary policy (COPOM) has raised the interest rate benchmark by 0.5% to 13.75% per year. The decision was unanimous and came without a direction indication and in line with expectations. Therefore, Selic is back to the level of december 2008. In the note released with the decision, the committee suggests that…
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IMF Says Brazil is Strong Against Turbulences
Brazil is today more resilient to face external turbulence, despite the significant growth in its debt in US dollar in 2014. The reason for the resilience, according to the IMF, is that the majority of the short-term debt is hedged. This is an undebatable advantage but that also brings a concern: the Real did not…
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Brazil Inflation
Below you will find the main Brazilian inflation indexes in the recent months, as well as the accumulated in the last two years and in the last 12 months. Wondering what each of indexes mean? Find out what they mean here. Or find more about the perspective for the Brazilian Inflation and interest rate moving forward…
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Brazilian GDP beats expectation in Q3 and grows 1.5% QoQ. But is that sustainable?
The result of the GDP may have shown some relief that the economy is still growing. However, this result is still not a guarantee that the situation is better and that the growth in the year will be higher than current expectations, around 2.5% YoY, the so called PIBinho, diminutive for GDP in Portuguese. Manufacturing…
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IPCA, IGP-M, IPC, INCC. How to make sense of Brazilian Inflation indexes?
In this article, we explain the difference between the many Brazilian inflation indexes, IPCA, IPGM, IPC and INCC and do some parallel to US equivalent indexes, when relevant. Recent inflation information for brazil can be found here. Or find more about the perspective for the Brazilian Inflation and interest rate moving forward IPCA (Índice Nacional de…