2 weeks ago
Sunday, February 13, 2011
Everybody in South America talks about the understated inflation in Argentina. The government claims it to be 10%, but it most likely is 20+%...
Now I have seen life in Sao Paulo get more expensive over the past months. My unrepresentative list goes like this:
- Club Monthly Fees: 13.6%
- Picanha at my grocer: 45%
- Taxi fare: +28%
- Milk: +8%
- Private School: +12%
- Real estate: Do not even mention it...
Official inflation is only aroung 5-6% but prices have been creeping up beyond, mostly food - possibly a bi-product of commodity inflation. Official numbers are not confirmed at the levels above... yet. With commodity prices soaring all around the world, more is likely to come, but I am worried that there may be much more already here in the country.
My fears have been "confirmed" with two pieces of news I came across recently: This week's Veja magazine, which is running a (non-representative and somewhat populist) special and The Economist, which has compiled a Big Mac implied inflation index. This index puts inflation in Brazil at n+4%, so more around 10%... Keep your eyes and ears open.
EDIT: Where you look, more news. Here from the Brazil Institute.