November 14, 2008
Global recession brings upon declination of agricultural prices in Brazil
The deceleration in Brazil's General Price Index-10 to 0.73 percent inflation in November against 0.78 percent in October was mostly prompted by 0.85 percent deflation in agricultural prices (especially soy and corn) against 0.54 percent inflation in the previous month.
The decline is due to deceleration in international commodity prices, which in turn has been caused by expectations of global economic deceleration and by recent exchange rate depreciation, according to the LCA Consultoria.
However, the document points out that acceleration to 1.41 percent from 1.14 percent in industrial product prices between October and November is the result of pressure from the dollar's appreciation against the real and from the delayed effects of sharp rises in commodity prices over the past few years.
Among the products surveyed by the index, the sharpest rises were seen in iron ore, chemicals, rubber products and plastics.