Brazil's Treasury Secretary Bruno Funchal said on Wednesday that the recent sharp rise in food prices is "a temporary shock" as a result of the spike in global prices due to the COVID-19 pandemic as the country faces critical inflation.
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The latest data released by the Institute of Geography and Statistics (IBGE) shows both rice and beans, which are essential in the Brazilian diet, have increased more than 20 percent in 2020 thus far.
The statistics describe that high prices in food are the cause of 80 percent of the accumulated inflation in the country, which stands at 0.7 percent.
"It is a temporary shock. This will be reversed soon, but it is a worldwide phenomenon related to the pandemic," Funchal said.
The government denies there will be a shortage in the domestic market as it relies on the harvest expected for 2021.
"The Minister of Agriculture, Livestock and Supply, @TerezaCrisMS, said on Tuesday (8) that the government will work to maintain the supply and lower the price of rice in the country."
Nevertheless, the inflation recorded in August alone, 0.24 percent, was the highest rate since 2016, according to IBGE. The whole group of foods and beverages amounted to 0.78 percent of the inflation in August.
However, Bolsonaro's government is determined to stick to his policy of "expansionary austerity" by which the government has cut public spending to support private-sector expenditure.
The formula has proved to foster uncertainty among the citizens as a recent poll by Datafolha shows that 70 percent of low-income citizens believe prices will continue to rise shortly.