Brazil Inflation Really at 8% Without Rouseff Fiddling
This article is for subscribers only.
Brazilian President Dilma Rousseff has been fighting inflation by holding down government-regulated prices. The bill will come due next year.
The winner of this October’s presidential election will suffer the consequences of policies that have repressed electricity prices by 30 percent, urban bus fares by 20 percent and gasoline prices by 15 percent since 2011, according to data from Rio de Janeiro-based firm Modal Asset Management. Lifting controls will unleash pressures that will keep inflation above the mid-point of the target for a sixth straight year.