On Friday, Brazil announced that consumer prices in 2010 had increased faster than the government’s targeted levels, mainly driven by higher food costs. The news is likely to weigh on the new administration of President Dilma Rousseff, who has vowed to maintain policies that have led to the country’s economic boom of the past decade in which millions of Brazilians improved their living standards.
But as she took office Jan 1, Ms Rousseff declared high inflation was a “plague” that damaged poor families, and vowed to fight it. Brazil and other Latin American economies have been able to grow with relatively low inflation rates, but higher food and energy costs around the world bring a new challenge to policy makers.” Read more.
“Inflation on the Rise in Latin America”
Diana Kinch and Anthony Harrup
Wall Street Journal, January 7, 2010.