Excessive Inflation

Atualizado: 4 de out. de 2021

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The whole point of having a leader is to negotiate on behalf of the company, to stimulate growth. It is the leader’s job to resolve problems. However, leaders rely on their team for input and added flare by making the effort to reach objectives.

Take for example the lopsided electricity price enlargement over the last year. Clearly it isn’t in line with price increases across the board which according to Paulo Guedes, the Brazilian Economy Minister, “inflation is under control. Inflation is calculated on a broad range of indexes, however if consumers use more of the high-level inflationary products and services then it stands to reason that the official country inflation is misleading. In other words, a consumer could consider a more realistic inflation based on their spread of purchases. Another factor to consider is purchase power that is based on income that mayhas been altered to often a lower income level than before the pandemic.


Most peoples’ day to day expenses are utility bills, petrol, medicines, and food. In Brazil, these are the items that have gone up well into double-digit surges. With this in mind it is clear to see that the population is being hammered, and cannot rely on anyone apart from themselves to resolve financial issues.


Many find the circumstances excruciating as the Brazilian leader, Jair Bolsonaro hasn’t got an exit strategy to reduce the burden by either external negotiation with suppliers, or internally to reduce taxes sufficiently in order of support the nation in these times of hardship. The situation is delicate and factors beyond his control are present.

Inflation is going up every week in Brazil and has done so for many weeks. Petrol, electricity, meat, and imported pharmaceutical products have all risen by more than 30%. In part because of the dollar exchange rate, and then according to the Energy Minister, Bento Albuquerque, the lack of rain has meant Enel, the electricity supplier has had to increase tariffs to compensate production.


The point is, augmenting production costs and increased delivery overheads are affecting knock on prices. News reports are citing such commercial reaction which in turn will encourage manufacturers and suppliers to correct market conditions that could easily see inflation reach well over 10%, by year end.


Written by Carl Boniface


Que tal melhorar seu nível de inglês comigo. Posso ajudá-lo a ir para o próximo nível. Obrigado!



Vocabulary Builder:

knock on = resulting inevitably but indirectly from


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