Inflation in Brazil increased to 4.76 percent year-on-year in October, mainly driven by rising energy and food prices due to a severe drought, according to data from the Brazilian Institute of Geography and Statistics (IBGE) cited by France Press.
Thus, the harmonized consumer price index (IPCA) is above the level desired by the central bank and government, between 1.5 and 4.5 percent.
Monthly inflation in October reached 0.56 percent, up from 0.44 percent in September, the data showed.
The statistics agency attributed the surge in inflation largely to the drought, which had a strong impact on electricity prices – up 4.74 percent – and meat prices – up 5.81 percent.
In recent months, Brazil has experienced a period of severe drought, experts say, linked to climate change.
These droughts have a direct impact on electricity production, which is largely dependent on water storage levels in hydroelectric dams.
Accelerating inflation, which started in September, was one of the main reasons that led the central bank to raise its key interest rate by half a percentage point (50 basis points) to 11.25 percent on Wednesday.