Rio, 12/10/2002 (Agência Brasil – ABr) – Inflation as measured by the General Market Price Index (IGP-M) for the first sample period in December rose 2.61%, the second highest rise since the beginning of the Real Plan. The spike is once again blamed on currency devaluation (the rise of the dollar against the real), while retail food prices also jumped sharply, although wholesale prices show signs of falling. For the sake of comparison, the IGP-M during the first sample period in November was up 2.31%.

The cumulative rise of the IGP-M for the year is now 23.93%. This leads the Brazilian Economic Institute at the Fundação Getúlio Vargas (Ibre), to forecast total IGP-M inflation for 2002 at around 25%. Meanwhile, market estimates are for the IGP-M to close out 2002 at 25.5%. (AB)