The General Price Index – Market (IGP-M) fell 0.04% in February compared to 0.52% in January, accumulating 6.82% in the last twelve months, the Getulio Vargas Foundation reported. The Broad Producer Price Index (IPA) reversed the trend and fell 0.19% in February, after advancing 0.50% in the previous month. The wholesale cost indicator accumulates an increase of 8.38% in 12 months. The Consumer Price Index (CPI) also slowed and increased 0.21%, from 0.52% in January, and accumulates 3.67% in 12 months.
Brazil’s government is trying to fight off a move by some lawmakers to grant the central bank autonomy and force it to target growth as well as inflation. Opposition lower house deputies plan to present an amendment to the autonomy bill that would set an additional target for the central bank – either employment or growth level – alongside its mandate to keep prices stable. The autonomy bill is ready to be put to a vote in the lower house. Unlike regional peers like Chile and Mexico, the central bank in Brazil doesn’t have formal autonomy from the government. Its head is named by the president and has a similar rank to cabinet ministers.
The Extended National Consumer Price Index (IPCA) closed 2019 at 4.31%, surpassing the key target for the year, which was 4.25%, says the Brazilian Institute of Geography and Statistics (IBGE) latest report. It is the highest annual inflation since 2016, when the index stood at 6.29%. December IPCA rose 1.15%, the highest result in a December month since 2002.