Levels of Inflation in Brazil Research Paper Example | Topics and Well Written Essays - 500 words

Levels of Inflation in Brazil - Research Paper Example This paper presents brief analysis of historical data of the inflation rates in Brazil. From the research it is clear, that the rate of inflation, prevailing in the Brazilian economy is high, as compared to other developed economies in the world. The reported rate of inflation in Brazil was 5.1 percent in April 2012. The reported rates of inflation in the US, UK and China were 2.3%, 3.47%, and 3.45% respectively. All these rates of inflation are lower than that of Brazil. The economic conditions in the South American countries are not as good as compared to other developed countries. However, the economy of Brazil has been growing at a rapid pace and it is becoming one of the well developed economies in the world. Brazil is the largest economy in South America and it has been growing at phenomenal rates in the recent past. With the rapid economic expansion, certain challenges are bound to be faced and one of such challenges is the high rate of inflation. Inflation refers to the rise in prices when compared to a specified level of purchasing power. The historical data of the inflation rates in Brazil suggests that the inflation rates in the Brazilian economy have not followed a constant trend and there have been numerous fluctuations in the inflation rates. In the set of analyzed data, its highest rate of inflation can be observed in the year 2005 which is 8.07% and in the immediately next year, the inflation rate fell to 4.63% which is a significant fall. The rate of inflation has showed a near constant behavior.