Brazil: Inflation reaches 12-year high as electricity costs surge
August 8 , 2015
Brazil’s inflation has reached 9.56%, the highest in 12 years, according to official data, with rising power costs playing a major part in pushing it high.
The central bank has hiked interest rates to 14.25%, which is one of the highest for large economies, to tackle the price rise.
The high inflation is adding to Brazil’s economic challenges. The country’s economy is expected to contract by 1.5% in 2015, according to the IMF.