Central Bank: with falling inflation, Brazilians regain purchasing power

Central Bank: with falling inflation, Brazilians regain purchasing power

Chamber Articles Category: Economic News Post Date: 04/03/18 Source: BrazilGovNews By: BrazilGovNews
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With inflation now at the lowest rate in history, Brazilian Central Bank governor Ilan Goldfajn assessed that Brazilians have regained purchasing power. In the current economic scenario, any raises workers receive can achieve real gains in wages, he assessed in an interview with the Brazilian government portal. Goldfajn spoke about important issues that directly affect the lives of Brazilians.

“Low inflation means that, once salaries are raised, it becomes possible to buy far more products than when there is high inflation. In the past, wages rose, but inflation rose much more. The price in supermarkets rose much more, and in the end workers did not really gain income," he explained, adding that "now, any salary increase means real gains, because prices will not rise”.

In Goldfajn's assessment, the current scenario is positive for Brazilian families, as lower interest and inflation rates allow them to retain the purchasing power of their wages. For him, the current economic scenario shows that Brazil has overcome the recession.

“We already had a recession with very high inflation in the economy two years ago. This time, we have a recovery (...) That is, the economy now grows with less inflation," he concluded. Read Full Article