Warhel :: Brazil inflation rate hits 12-year high

Brazil inflation rate hits 12-year high

Updated on: 08-Aug-2015
Inflation in Brazil has hit a 12-year high of 9.56%, official figures have shown.The rising cost of electricity, in particular, has pushed the rate to its highest level since November 2003.

Brazil inflation rate hits 12-year high

The countrys central bank targets an inflation rate of 4.5% and has raised interest rates to 14.25% - among the highest of major economies - to combat rising prices.

High inflation is compounding Brazils economic woes.

According to the International Monetary Fund, the countrys economy is set to shrink by 1.5% this year.

Weaker demand for Brazil commodities, particularly from the slowing Chinese economy, is the main reason behind the slowdown.

The countrys President, Dilma Rousseff, is also trying to force through measures to cut the countrys deficit by cutting spending and raising taxes.Brazil is currently the worlds seventh largest economy.

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