Brazil among world leaders in inflation persistence – study alerts

History shows that inflationary persistence tends to follow current inflation. Since late 2020, inflation in Brazil has risen, and while so far inflation persistence has not kept up, things can quickly change. "The Central Bank should stop saying that inflation is temporary." according to Credit Suisse study.

RIO DE JANEIRO, BRAZIL - A study by Credit Suisse shows that the effects of price hikes last longer and with greater intensity in the country.

A study by Credit Suisse economists shows that Brazil ranks first among emerging countries in terms of inflation persistence, and if it is careless with very high inflation, it could experience even greater persistence in the future.

The indicator used by the bank is how much theoretically temporary shocks affect the economy's price level. Brazil scores 3, which means that if a price hike in fuel or other commodities causes a 1% increase in . . .

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