China News Agency, Sao Paulo, May 8 (Reporter Mo Chengxiong) Affected by the new crown epidemic, Brazil's economy is weak and deflation is reappearing. On the 8th local time, data released by the Brazilian Bureau of Geography and Statistics (IBGE) showed that in April this year, Brazil ’s inflation rate fell by 0.31%, lower than 0.07% in the previous month and 0.57% in the same period last year, the lowest monthly rate since August 1998 Inflation level.
On May 1, local time, in Sao Paulo, Brazil, the gate of a large shopping center on Paulista Avenue was closed. China News Agency reporter Mo Chengxiong
Data show that in April, Brazil's inflation rate fell less than market expectations. Earlier, market analysts believed that Brazil's inflation rate would drop by 0.2% for the month.
The sharp decline in fuel prices is the main reason for this deflation. In April, Brazilian fuel prices fell 9.59%. Among them, ethanol fell by 13.51%, gasoline by 9.31% and diesel by 6.09%.
In addition, prices for housing, transportation, clothing, education, communications, health, and personal care also declined to varying degrees in April.
However, in April, food and beverage prices rose 1.79%. Among them, onions rose the most, up 34.83%. Potatoes rose 22.81%, green beans rose 17.29% and milk rose 9.59%.
The data also shows that in the first four months of this year, Brazil's inflation rate accumulated to 0.22%. In the past 12 months, Brazil's inflation rate has accumulated to 2.4%, far below the 3.3% in the previous 12 months. This inflation data is also much lower than the median 4% inflation target set by the Brazilian government this year.
According to industry insiders, in April Brazil has taken strict social isolation measures to deal with the epidemic, resulting in the closure of many stores and the suspension of factories and the economy has been greatly affected. Under the epidemic, Brazil ’s unemployment rate remained high, people ’s incomes decreased, and purchasing power declined, and inflation continued to fall. Brazil's economy is expected to decline by 3.76% this year, with an inflation rate of 1.97%. (Finish)