Brazil & Southern Cone - August 2010 (ISSN 1741-4431)

In July the consumer price index rose 0.1% on a monthly basis. This was well below the 0.6% registered in June. The July figure brought the accumulated inflation rate for the first seven months of 2010 to 2.4%. The annual rate was 4.7%. In the first half of 2009 the annual rate was a much lower 1.1%. In July 2009, consumer prices fell 0.3% on a monthly basis. The central bank said that inflation in July would have been lower but for a rise in prices in a range of fresh foods. The price of cooking gas also rose because of shortages. This prompted an increase in imports of electric cookers. The central bank is not too bothered about the vagaries of inflation, which probably have more to do with the weather than policymaking. The bank noted that the economy seems to be growing healthily: demand and supply both look solid.

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