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BC president says he is surprised by the rise in inflation

March IPCA was the highest rate for the month since the implementation of the real

The president of the Central Bank, Roberto Campos Neto, classified the core inflation as "very high". He expressed himself as “surprised” with the 1.62% acceleration presented in March for the National Consumer Price Index (IPCA). The statements were made at an event broadcast over the internet.

According to the Brazilian Institute of Geography and Statistics (IBGE), the IPCA for March  was the highest rate for a month of March since the implementation of the Plano Real in 1994.

Among the reasons for the result, Campos Neto cited indices related to “industrial processes”, which, according to him, did not fall as expected. According to Campos neto, the service sector reacted “more or less” as expected, referring to the sector's repressed inflation.

SURPRISES

“Inflation cores are quite high, and short-term surprises have a part that was gasoline and another that was clothing, which came very strong. We then look at the chain and see if there is anything more informative in the long term,” she said.

“We understand that there is a shock of energy on top of a shock that was already coming. We see the diffusion, which was one of the highest we've ever had,” she added.

Campos Neto, however, said that, despite the surprise caused by the inflationary results, he believes in a future improvement of the situation, when the hike in the basic interest rate reflects more intensely on the economy.

“We had a surprise in this last number [March IPCA]. We will look at and analyze the factors that are generating these inflationary surprises and we will communicate this at a more appropriate time,” she said.

The Central Bank president said, however, “that much of the work we have done in terms of interest rates will have an impact in the coming quarters. So we still have a lag in relation to what has already been done”.

Campos Neto recalled that the monetary authority is “always open to re-analyzing the scenario, if we understand that there is something different from the pattern that we had identified until then”.

Editing: Fernando Fraga

central bank Roberto Campos Neto inflation IPCA Selic Fees

Posted on 04/11/2022 - 15:38 By Pedro Peduzzi - Reporter from Agência Brasil - Brasília

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source writing https://agenciabrasil.ebc.com.br/economia/noticia/2022-04/president-do-bc-se-diz-surpreso-com-alta-da-inflacao

March inflation was a surprise, says Campos Neto

CLOTHING AND FOOD ROSE BEYOND FORECAST; IPCA OF THE MONTH WAS 1.62%

Recent inflation was a surprise and we are open to analyzing the scenario, says Campos Neto

In the presentation, the BC president stated, on the other hand, that the rise in the real is still not fully reflected in prices

Biggest for the month since 1994, March inflation surprised, says Central Bank president

ROBERTO CAMPOS NETO HIGHLIGHTED THE RISE IN FUEL, CLOTHING AND FOOD OUTSIDE THE HOME. 'THE REALITY IS THAT OUR INFLATION IS VERY HIGH,' HE SAID.