Brazil’s inflation jumps to 8.1% y/y, a 6-year high
Brazil’s Broad Consumer Price Index (IPCA) rose by 8.1% y/y in May, remaining well above the 5.25% upper limit of the inflation target range for 2021. It is the highest figure since September 2016, driven by higher energy prices.
Electricity prices jumped by 11.6% y/y in May, reflecting a drought in the reservoir regions of hydroelectric plants. In addition, fuel prices grew by 47.5% y/y on the back of rising oil prices and a lower supply of ethanol.