Predictions
- Rapidly rising inflation will increase financial pressure on public and add to economic and political volatility
- Central bank will likely raise interest rates again to combat rising food, transport and energy prices
- Financial pressures could lead to increased wage demands, more frequent strikes, and populist tactics by President Bolsonaro
Event
Brazil’s inflation rate rose by 0.89% in August. The 12-month annualised rate consequently reached 9.68%, a five-year high. This is far above the central bank’s targets of 3.75% this year and 3.5% in 2022, within a band of plus or minus two percentage points.
Falanx Assynt is a global intelligence consultancy and leading provider of geopolitical, strategic and business risk analysis since 2003. Falanx Assynt is part of Falanx Group Ltd (LON:FLX) which, through its subsidiaries, provides cyber defence and intelligence services to blue chip and government clients worldwide.