Brazil’s consumer prices surged by 1.31% in February, the highest since March 2022, leading to a rise in annual inflation to 5.06%. This increase is largely due to soaring food costs and high housing expenses. The government, under President Lula, is under pressure as Central Bank prepares another significant interest rate hike to manage inflation.

Brazil has witnessed its highest consumer price increase in three years, primarily affecting President Luiz Inácio Lula da Silva as inflation pressures mount. Official data indicates a 1.31 percent rise in February, which aligns with Bloomberg economists’ estimates, pushing annual inflation to 5.06 percent. This surge is primarily driven by escalating food costs, prompting the government to seek solutions to alleviate shopper distress.

In summary, Brazil is grappling with significant inflation, leading to increased pressure on President Lula and his administration. The Central Bank is responding with interest rate hikes to manage inflation, particularly due to high housing and food costs. However, measures taken so far may have limited effects, with inflation expected to remain above target levels in the near future.

Original Source: www.batimes.com.ar