Financial Times: Brazil inflation is running well above the government’s target of 4.5 per cent a year. Prices rose by 5.6 per cent in the 12 months to November and the rate is expected to reach nearly 6 per cent by the end of the year. This has prompted the Brazilian central bank to give unusual advance warning of an interest rate increase, probably coming in January.Inflation has been driven partly by rising international commodity prices, especially for food. But price rises have spread to other sectors as the fast growth in Brazil’s economy, expected to be about 7.5 per cent this year, puts pressure on supply.
