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Brazil Approves a Plan to Control Inflation Rate

From Reuters

Government, business and key trade unions Friday signed a pact designed to stop Brazil’s high inflation rate from spiraling out of control.

Officials said the three groups agreed to fix inflation this month at 26.5% and 25% in December.

Ninety-four items, including electricity, transport, postal services, beer, tobacco and certain foods will have price rises set at this level.

Under the pact, wages will be adjusted by 21.39% in November and 26% in December.

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In October prices soared a record 27.25% and Brazil was gripped with the fear that its cruzado currency was on the road to collapse.

The new social pact gives the government 30 days to “make a new proposal for stabilizing public finances.”


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