The president of the Central Bank (BC), Roberto Campos Neto, highlighted this Monday, 29, that, for the first time, Brazil is experiencing a global inflation outbreak with price indices below the international average.
During a speech in Fortaleza (CE), Campos Neto maintained that the situation is due, in part, to the BC’s decision to start raising interest rates before the other economies. When the central bank initiates a faster monetary adjustment, he pointed out, the cost to society is lower.
After making a retrospective of facing the pandemic, which required coordinated action of fiscal and monetary stimuli to avoid a depression, the president stressed that inflation and its cores are falling in several emerging countries, including in Latin America.
At this point, he stressed that full inflation in Brazil was the one that fell the most among emerging countries. However, the core averages, observed by BC, fall slowly, which demands care.
In advanced countries, pondered the president of the Central Bank, inflation, after a drop, rose again. “This is a matter of great concern”, pointed out Campos Neto. He noted that growth surprises in China are on the downside, and the effect of the resumption of services in the country is unlikely to be perpetuated.
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