Power tariffs trigger Brazil inflation spike

Friday, September 5, 2014

Higher power tariffs are to blame for a sharp rise in Brazil's inflation rate, according to federal statistics bureau IBGE.

Figures released Friday show official inflation hit 0.25% in August, up from 0.01% in July.

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Rates rose by an average of 1.76% as utilities sought compensation for higher wholesale energy costs prompted by the use of backup thermoelectric plants.

IBGE prices coordinator Eulina Nunes dos Santos told state news service Agência Brasil the trend was a reversal of 2013 when lower electricity tariffs kept inflation in check.

Santos added the price of services rose in six of the 13 metropolitan areas included in its survey.