July 28, 2008

 

Brazil's Sao Paulo state food inflation up 3.5 percent to July 19

 

 

Food prices rose in Brazil's most populous state again in the four weeks ended July 19 by 3.5 percent, the Rural Economy Institute of Sao Paulo's Agriculture Department said Friday (July 25).

  

Food prices have been rising on and off all year, prompting an increase in Brazil's benchmark interest rate to 13 percent on Wednesday from 12.25 percent, in an attempt to fight inflation.

  

Beef and chicken prices continued to be inflationary again over the period, with chicken up 8.7 percent to 1.87 Brazilian reals ($1.19) per kilogramme and beef prices up 5 percent to BRL90.13 per 15 kilograms.

  

Corn prices rose 12.6 percent over the period to BRL24.75 per 60-kilogram bag, with rice prices holding relatively steady at 0.24 percent higher, or BRL40.43 per bag.

  

The inflationary food environment will likely continue pressuring Brazil's Central Bank into raising interest rates, government officials have said repeatedly.
   

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