By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – The Consumer Price Index (IPCA) in Brazil rose by 0.51 percent in November according to the IBGE (Brazilian Statistics Bureau). The rate is higher than that registered in October (0.42 percent) but lower than in November of 2013 (0.54 percent).
Meat prices increased for the third consecutive time in November, by 3.46 percent, and was the main factor to contribute to the increase in the index, according to Eulina Nunes dos Santos, coordinator of the index at the IBGE, “During the entire year the meat segment has exerted pressure over living costs and today we have a total (annual) increase of more than seventeen percent.” The overall food group registered an inflation of 0.77 percent in November.
According to Santos this year’s drought hindered pastures and there are not sufficient cattle to be slaughtered. In addition, she says exports have skyrocketed with Russia’s decision not to purchase meats from the United States, purchasing instead from Brazil. “There is a great pressure on demand,” she concludes.
Among the other segments, which increased in November, in comparison to October are housing (0.69 percent), transport (0.43 percent), health (0.42 percent) and personal expenditures (0.48 percent). With the latest inflation report, the IPCA accumulates an inflation rate of 5.58 percent for the year and 6.56 percent for the last twelve months.
The twelve-month inflation rate continues slightly above the government’s official annual inflation target of 6.50 percent. For the inflation index to return to the government’s target the IPCA will need to register an inflation index in December of at the most 0.86 percent.