INSUBCONTINENT EXCLUSIVE:
Food and health expenses drove most of the inflation
Food and beverages prices jumped 1.14% in April, with notable increases in tomatoes, coffee, and milk.Health and personal care costs rose
0.96%, reflecting higher prices for medicines and personal hygiene products
with only transportation showing a decline, mainly due to a sharp drop in airfares and lower fuel prices.Regionally, nine out of eleven
surveyed areas registered price increases
Porto Alegre saw the highest rise at 0.88%, largely due to surging tomato and gasoline prices
On May 7, the committee raised the benchmark Selic interest rate by half a percentage point, bringing it to 14.75%, the highest since
The committee signaled that future rate moves will depend on economic data, highlighting ongoing uncertainty.Analysts note that, despite the
rate hikes, inflation remains stubborn due to food and energy costs
The Central Bank recently lowered its inflation forecast for 2025 to 4.8%, but this still exceeds the official target.The government has
introduced stimulus measures, but the inflationary environment complicates efforts to support growth without fueling further price
rises.Business leaders and investors watch these developments closely
High interest rates increase borrowing costs and may slow investment, while persistent inflation erodes consumer purchasing power.The
