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Between January and September 2022, the country accumulated a rise of 4.1% and is second only to the rise in prices in Japan, Saudi Arabia and China.

 

By Jovem Pan 10/19/2022 6:48 am

    

Archive / Brazil Agency

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Brazil was among the countries with the lowest rate of price increase in the economy in 2022

A survey carried out by the Austin Rating consultancy showed that, from January to September of this year, inflation in Brazil is the 4th lowest among the G20 countries, which represent the largest economies in the world. Inflation in Brazil, in the same period, accumulated a high of 4.1% and is second only to the rise in prices in Japan, of 2.8%, in Saudi Arabia, of 2.7%, and in China, of 1 .9%. However, the Brazilian level remains lower than other rich and developed nations. In Germany, cumulative inflation is 9%, in Australia the increase is 12.2%, in Italy 7.1%, in the United Kingdom 7.6%, in the European Union 8.5% and in the United States 5.8 %. This reduction in inflation in Brazil was influenced by the ICMS ceiling of 18% for the state tax on energy, approved by the National Congress, which lowered the price of fuel, telecommunications and electricity. However, economists interviewed by Jovem Pan News point out that there are still challenges ahead, as stated by Ibmec member and economics professor, Gilberto Braga.

 

“We are approaching the so-called [inflation] target ceiling. And for the year 2023, there is an IPCA of 4.97%, therefore below 5%. These are positive news, but they still signal a picture of concern and uncertainty regarding the coming year”, detailed the economist. This week, the Central Bank's Focus Bulletin reduced its inflation forecast for the year 2022 for the 16th consecutive week. The market is now betting on a rate of approximately 5.6%, compared to 5.7% in the previous week. Economist from Fundação Getúlio Vargas and the Brazilian Institute of Economics (Ibre), André Brás, is still reticent about decelerating inflation in 2023: “Inflation should end in 2023 at a level very close to this year. Remembering that the deceleration of inflation in 2022 has to do with tax breaks, not a general fall in prices. So, this sudden cooling down that inflation has this year is a bit artificial.” In the last three months, inflation measured by the IPCA, from the IBGE, showed a negative change. This accumulated deflation was 1.3%, the highest for a third quarter since the beginning of the historical series in 1980.

 

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