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 The Consumer Prices Index in Brazil experienced its biggest increase in four months in April, 0.55% (up from March's 0.48%) because of higher food costs, according to the Brazilian Institute of Geography and Statistics (IBGE).
The index was in line with analysts expectations but is considerably higher than April 2007, 0.25%. The CPI for the first four months now stands at 2.08%, compared to 1.51% a year ago, added IBGE. In the last twelve months inflation was 5.04%, which is above the target established by the Central Bank.
The current inflation targets for 2008 and 2009, with a two percentage points tolerance has been established at 4.5%.
IBGE said food prices were responsible for almost half of April's inflation having jumped 1.29% in April compared to 0.89% in March.
"Inflation profile this year is similar to last year's but since food prices are putting on more pressure, inflation in 2008 begun at a higher level. Higher food prices will be almost constant the whole year," said IBGE economist Eulina Nunes dos Santos adding that this year's "inflation will be mostly international."
Brazil's central bank policy makers increased the benchmark interest rate for the first time in three years last month in an attempt to contain inflation.
Nunes dos Santos further warned that "there's no reason to believe that May's CPI will be lower. There are no indications of such a tendency internationally and we don't believe food prices will ease sufficiently to have a real impact." Inflation in May last year was 0.28%.
Food staples had the major impact in April's CPI, followed by clothing, hygiene products and medicines, which increased 1.53%, 1.41% and 1.18%. On the other extreme non food prices slowed down to 0.34% in April from March's 0.34%.
Regarding energy prices the strong Brazilian currency and biofuels helped to bring down prices by 0.65%, 0.49% and 0.14% respectively for ethanol fuel, electricity and gasoline.
Mercopress
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which I am sure you figured out. Good to hear from you too. I went to Brazil early April for a week. I've been busy ever since on the return to the States. There haven't been any really interesting articles to comment on , so I have been quiet. But you c,ch and ",..., " keep me interested. I depend on the 3 of you guys comments plus "panorama economico" in the "Correio da Bahia" to sift through the hype of some of the stats from the newsroom of the articles on this mag. 
Or around 6.25 % annualized for 2008.
Worse yet, yesterday the IGP-M came out, a true disaster :
"Brazil's IGP-M general price index jumped to 1.36 percent in the month to May 8, compared with a median estimate of a 0.58 percent rise by economists surveyed by Bloomberg. The index rose 0.33 percent in the previous period, the Getulio Vargas Foundation said in Rio de Janeiro today."
Conclusion from some Brazilians and foreign analysts (not me) :
"``There's even some talk that the bank may raise rates by 0.75 percentage point in its next meeting.''
Your 3 months government paper is yielding 12.31 %, 6 months at 13.23 and 1 year at 14.05 %
FASTEN YOUR SEAT BELT BRAZIL !
After a change in trend (up or down - but up this time) in interest rates, as you have had a week or two ago, the serie continue for a while....IN THE SAME DIRECTION !!!!!!!
Meaning that SEVERAL more interests rates increase will follow for the forseable future !!