The ups and downs of Brazilian inflation in 2023

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Inflation has had its ups and downs throughout 2023. January has already started at 5.77%, above the tolerance established by the National Monetary Council, which was 4.75%. Three other months of the year were above this tolerance - in February 5.60%, September 5.19% and October 4.82%.

Some of the factors that caused this increase were the war in Ukraine , for example. The entire planet felt the effects of the war in Eastern Europe ― the prices of gasoline, diesel and cooking gas reached new records, with gasoline reaching an increase of 12.09%, the sub-item that had the greatest weight among all those measured by the IBGE;

Even with this increase, the Food and Beverage sector kept the index bulgaria phone number list increasing further - its rate remained at 1.03%, helping to prevent inflation from accelerating significantly. Food delivered at home had a deflation of 0.52% and contributed even more to holding down the annual rate.

In December, the year had a positive outcome: average inflation was 4.62%), within the target of 3.25% established by the National Monetary Council (CMN), with a tolerance range of 1.5 percentage points more or less (1.75% to 4.75%), the lowest annual rate since 2020.

Inflation expectations for 2024
The inflation forecast for 2024 is already more positive. According to the Central Bank, the increase is expected to be 3.9% per year, within the target set by the CMN (National Monetary Council). If this forecast is met, companies are expected to perform better during the year.

However, caution is needed. The ongoing war in Ukraine and the wars in the Middle East could put pressure on international commodity prices. The Brazilian government's fiscal policy also needs to be monitored, as new public spending could generate inflationary pressures.

To ensure success in 2024 and navigate inflation with ease, companies must always continue to monitor these indexes and production costs, invest in efficiency, diversify markets and seek greater flexibility and adaptability to the economic scenario.