Brazil's inflation rate grew at a rate beyond the government's expectations for 2015. It was at its highest level compared to figures noted in almost last twelve years.
The more than ten percent rate is an indication for the government to take action to control prices in spite of growing recession.
Alexandre Tombini, the central bank chief wrote a public letter explaining the reasons why policymakers missed the target. He reaffirmed that necessary measures will be taken by the central bank to curb prices. It hints at a rate hike although some of the politicians and government peers are not in favour of it.
On Friday, the statistics agency IBGE said, consumer prices as measured by the benchmark IPCA index BRCPI=ECI scaled 10.67 percent last year. That is much beyond the official target which ranged between 2.5 and 6.5 percent.
Brazil's high inflation rate had many factors behind it with hikes in taxes, higher rate of public spending and a strong El Nino.
In another incident, on Friday, several youths wearing masks and protesting the bus fares increase, clashed with the Brazilian police in Sao Paulo.
- Postage Prices will Decrease from Sunday; USPS not too Happy About It
- Marriott and Starwood Hotels & Resorts Worldwide Inc Shareholders Approve to $14.41 Sales Deal
- UK plan to impose additional tax on sugary drinks
- Obesity during pregnancy may increase risk of very ‘large babies’
- Dropping Sales at Gap’s Key Brands hurt the Company’s Shares