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The monetary policy committee started last tuesday (19), the first of two days of meeting to decide on the monetary policy to be adopted in the country. The market anxiously awaits the announcement and the minutes of this meeting because it may contain elements that point to possible next steps by the monetary authority and the consequent effects on the exchange rate, inflation, public accounts, etc. depending on the latest readings of price indices, the central bank should indicate future actions aimed, albeit marginally, at controlling inflation. Follow our review below. The price indices according to the ibge, brazil's official inflation, the ipca, ended last year with an increase of 4.52%. the monthly variation in december was decisive for placing inflation above the center of the target established by the national monetary council.
In the last month of the year, inflation was +1.35%, the highest variation for december since 2002, showing, for all intents and purposes, that, despite the situation being under relative control, inflation will be a matter of concern Kenya Phone Number List for the authorities in 2021 . the main contribution to the increase in this inflation, especially since june of last year, is the exchange rate of the us dollar in reais. The brazilian currency, which had already been losing strength against the dollar, increased its losses as of march, when the brazilian stock exchange had to activate the circuit breaker on six occasions, equaling the 2008 record. An indicator that shows the power of the exchange rate on prices for brazilian businessmen and consumers is the igp-m.
The fgv index better captures the impacts of the dollar on domestic prices as it is a weighted average of wholesale, consumer and construction sector prices. Wholesale prices, the first to feel the cost increase resulting from a currency devaluation, represent 60% of the index. According to data from the second preview of the january igp-m, inflation measured by this indicator points to an increase of +24.2% in the last twelve months, while the fraction that measures the variation in wholesale prices, the so-called ipa-m, varied +33.2% in the same period. Two years ago, both the igp-m and the ipa-m showed deflation.
In the last month of the year, inflation was +1.35%, the highest variation for december since 2002, showing, for all intents and purposes, that, despite the situation being under relative control, inflation will be a matter of concern Kenya Phone Number List for the authorities in 2021 . the main contribution to the increase in this inflation, especially since june of last year, is the exchange rate of the us dollar in reais. The brazilian currency, which had already been losing strength against the dollar, increased its losses as of march, when the brazilian stock exchange had to activate the circuit breaker on six occasions, equaling the 2008 record. An indicator that shows the power of the exchange rate on prices for brazilian businessmen and consumers is the igp-m.
The fgv index better captures the impacts of the dollar on domestic prices as it is a weighted average of wholesale, consumer and construction sector prices. Wholesale prices, the first to feel the cost increase resulting from a currency devaluation, represent 60% of the index. According to data from the second preview of the january igp-m, inflation measured by this indicator points to an increase of +24.2% in the last twelve months, while the fraction that measures the variation in wholesale prices, the so-called ipa-m, varied +33.2% in the same period. Two years ago, both the igp-m and the ipa-m showed deflation.
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