BRASILIA: Producer prices in Brazil rose in February at their fastest rate since comparable records began seven years ago, figures showed on Tuesday, intensifying “stagflation” pressures in an economy battling rising interest rates, a weak currency and the COVID-19 pandemic.
The monthly and annual rates of factory gate inflation in Latin America’s largest economy jumped to 5.2% and 28.6%, respectively, both the highest since statistics agency IBGE’s data series began in January 2014.
Prices rose in each of the four main categories surveyed and in 23 of the 24 activities surveyed, led by a 27.9% surge in mining costs on the month, which accounted for around a third of the overall rise.
Oil refining and alcohol production costs rose 12.1% on the month, accounting for over a percentage point of the broader monthly increase, IBGE said. The Brazilian real slumped 30% against the dollar last year and has depreciated a further 10% this year.
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