The Brazilian Institute of Geography and Statistics (IBGE) published, on the morning of this Wednesday (24), the preview of inflation for the month of August – the so-called IPCA-15 (National Index of Consumer Prices Extended-15). With a decrease of 0.73%, the deflation of the indicator was the highest in the historical series, which began in November 1991.
According to a statement by the president of the Central Bank (BC), Roberto Campos Neto, at an event in Chile last Tuesday, the chances of deflation lasting three months in Brazil, from last July to next September, are great.
The main reason for the drop is the tax reduction measures promoted by the government. The BC president, however, makes the caveat: although the drop in the price of commodities such as oil pushes the numbers down, inflation in the services sector remains under considerable pressure and the period that follows is still very uncertain.
At Tuesday’s event, Campos Neto highlighted, above all, that this uncertainty is based on the country’s fiscal scenario. “We are not going to celebrate deflation, because we still have a lot of work ahead of us,” he said.
The country’s public spending policy is the subject of the episode of CNN Money this Wednesday, which also adds a survey carried out by the Brazilian Institute of Economics of the Getúlio Vargas Foundation (FGV-Ibre), whose economists estimate the 2023 fiscal risk account at up to BRL 430 billion, equivalent to 4% of GDP.
Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.
Source: CNN Brasil
