Brazil was ranked eighth in the ranking of countries with the highest inflation rate by McKinson, a consulting firm. According to the consultant, the state expected the inflation rate to be around 5% for 2022. However, in June, this percentage has already doubled, reaching 10%.
The report published by the consulting firm shows how inflation has, to say the least, changed the economic climate and may redefine the course of global and national economies around the world in the coming years.
McKinsey experts have studied many of the strategic effects of inflation. And they created a document that was crafted using the best and most recent publicly available data, which presents seven graphs showing the insidious progression of inflation.
Over the past six months, inflation has far exceeded expectations for December 2021. And in many countries, real rates have doubled their forecasts.
European countries are particularly affected. For example, Lithuania’s inflation rate is 15.5% per year, nearly five times the expected rate. Poland 11% and United kingdom At 9%, both are well above expectations. With 3%, Switzerland is an exception.
Asia is experiencing a less dramatic change: India’s inflation rate is around 7%, slightly above expectations. and South Korea 5%. In China and Japan, inflation remains low.
Lithuania, Estonia, Latvia, Czech Republic, Poland, Slovakia, and Hungary are the seven countries with the highest inflation rates compared to Brazil. Other South American countries, such as Chile and Colombia, show lower rates. Puerto Rico, in Central America, appears better in the rankings.
Brazil is the sixth in the interest rate increase
In response to the alarming rise in inflation, central banks around the world are raising interest rates. But so far, interest rate increases in most countries have not kept pace with inflation.
In any case, Brazil is the sixth country to record the largest increase in interest rates, with 4 percentage points accumulated through June 2022. That month, the Central Bank’s Monetary Policy Committee Copom announced a 0.5% point increase in the base rate for the economy.
With this decision, the so-called Selic rose from 12.75% to 13.25% annually. 2022 started at a rate of 9.25% per annum. Cobom raised it four times, up 4 percentage points through June. In terms of interest rate hikes, Brazil ranks second after Argentina (14%), Ghana (6.16%), Hungary (5.35%), Chile (5%) and Poland (4.25%).
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.