Brazilian GDP Continues to Outrun Inflation

Brasilia, October 25, 2011-The government´s closely watched
inflation indicator of Consumer Prices 
rose 0.42% for the period from September 14^th to October 13^th
0.11% below the prior month at 0.53%. Cumulative year to date the figure is
5.48% and for twelve months trailing, 7,12%, compared to the year-ago figure of
7,33%.

Brazil years ago, prior to the introduction of the Real Plan
in 1994, lived through some of the worst hyperinflation ever seen. Government
fiscal and monetary economists have learned to watch these number like hawks.
The measure is surveyed, calculated and published on a fortnightly basis.

GDP
growth-the key measure of economic growth in general, measured 7.5% for 2010,
AFTER inflation of 7,33% for that year. The latest figures show that the
Brazilian economy continues robust with no signs of “overheating.”

Increases for the period September 14- October 13 were
generally less than the previous month across all categories.

Please see table
below:

CPI increase Sept. 14 to Oct 13 by category:

And
by Region, Brasilia led the increase with a jump of 0.77% principally due to
increased domestic airfares, up 13.01%. 
The lowest regional increase was recorded in Belem with a drop of -0.12% due to a 0.26%
fall in food prices.

Author

Steven Glazer
Skype=force-br
Mobile=+55 85 9665 0855-TIM & 8863 0112-OI