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Latino Daily News

Thursday May 8, 2014

Brazilian President Acknowledges Inflation Poses Problem

Brazilian President Acknowledges Inflation Poses Problem

Photo: Dilma Rousseff

Click Here to Enlarge Photo

President Dilma Rousseff acknowledged that higher inflation means “not all is right” with Brazil’s economy, although she said consumer prices are “under control” and rejected opposition forecasts of a crisis in 2015, the media reported Wednesday.

“This story about how everything’s going to explode in 2015 is absurd. It’s ridiculous,” Rousseff said Tuesday night at a dinner with female journalists at the Alvorada palace, her official residence.

Brazil “is a solid country with economic stability, sophisticated industry, very attractive for international capital,” she was quoted as saying by the country’s leading dailies.

Brazil’s benchmark IPCA consumer-price index rose 6.15 percent in the 12 months ending March 31, near the 6.5-percent ceiling of the government’s target range.

Since 2006, the government has set an annual inflation target of 4.5 percent, with a tolerance margin of plus or minus 2 percent.

During the dinner, the president criticized a proposal by one sector of the opposition to reduce the inflation target to 3 percent.

That would cause the unemployment rate to rise from a current level of 5 percent to nearly 8.2 percent, according to Rousseff, who supports keeping the inflation target unchanged while also making “social and infrastructure investments.”

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