Inflation in 2005 was lowest since 1998

12/01/2006 - 15h42

Daniel Merli and Thaís Leitão
Reporters Agência Brasil

Brasília and Rio – The Broad Consumer Price Index (Índice de Preços ao Consumidor Amplo) (IPCA) closed out 2005 with the lowest increase since 1998 (a year before a sharp devaluation of the real - Brazil's currency). The increase was 5.69%. in 2005, down from 7.6% in 2004.

Even with the low rise in the IPCA, some prices did increase significantly. Such as bus fares, the price of gasoline, and telephone and electricity bills. All of those prices are government controlled (administrados por órgãos governamentais).

Urban bus fares jumped an average 10.4%. According to the government statistics bureau (IBGE), that was an increase that had a big impact on low-income family budgets. Gasoline prices rose 7.76% during the year.

Translation: Allen Bennett