Inflation Rate and Economic Stability of Brazil

splashiness Rate and Economic stableness of brazilIntroductionThis paper is patronageed with the economic consideration of angiotensin converting enzyme of the South Ameri squirt countries and analyzes the preserve of an economic concern on that especial(a) South American country that has been chosen and identifies the tendency of the economic concern with in specified region on the basis of data sets stack up from the source. The south American countries has major impact on American rescue and the economic concern of genius of an important country raise our carcass of knowledge regarding the economic swerve in that particular country and its impact on overall economy as well.South American provinceThe economy of South America consists of twelve nations with three territories and comprise of 6% of population in the world. I have choose Brazil among other(a) South American countries as Brazil is the largest South American country andBrazil is one of the fastest growin g economies of the world. It is ranked at one-fifth spot in the world regarding population and geographical region and fifth largest economy regarding GDP in the world. The economic concern of Brazil is effectively contributes to world economy and interesting trend of economy can be seen. (Abreu, 2005).Economic ConcernAmong four economic concern including GDP, quantities of specificGoods and serve gross Domestic Product (GDP), and unemployment lump I have selected ostentation. ostentatiousness is an important economic concern that will effect the economy in great extend and fanfare drift of a country economy is an important indicator for a country growth prospective. ostentation convey rise in the general price level of the country and discharge the real value of money as fewer commodities will bought with each additional unit of currency. rising prices directly relate to the economic productiveness and has positive and negative both effect on economy as it create econom ic uncertainty which may discourage saving and investing. spunky prices of general commodities and hoarding will be its largest disadvantage. In positive guts it may encourage non monetary investment. But the largeness regularize need to be control in order to sustain country economy. ostentatiousness trend in BrazilThe inflation regularise in Brazil is fluctuating over the years. No consistent trend can be seen in the inflation say ac past year data support this assumption. According to the data displayed by ( IPCA) in 2002 the inflation swan was 12.53% that is kind of high rate. Then the decreasing trend of inflation rate can be seen in Brazil economy as 9.3% in 2003, 7.6% in 2004, 5.69% in 2005, and 3.14% in 2006 that is least in this decade. Then the minute increasing trend can be seen in rate of inflation. 4.46% can be seen in 2007 and 5.91 in 2008. The fluctuating trend can be seen in this range in coming years as well. ( ostentation statistical table)Statistical Ta bleInflation (IPCA)200212.53%20039.30%20047.60%20055.69%20063.14%20074.46%20085.91%Past two years Inflation TrendPast two years calendar monthly inflation rate trend can be seen from this graph that shows the monthly frequency of the inflation rate. The graph bars shows the trend of inflation from year 2011 that is 6.01%. The increasing angle can be seen from March, 2011 up to October, 2011. Inflation rate at the month of October is the highest that is 7.31%. Then the control implementation on inflation increasing trend can be seen from 7.31% to the deep low rate at 4.92% in July, 2012 that is complemented to Brazil economy. The upward Trent at semi annual bases can be seen in Brazil economy. The last recorded inflation rate of 6.15% that is quite high. Brazil administration target inflation rate is 4.5% with the plus and minus tolerance margin of 2% in it. The high inflation trend is important consideration for the authorities as increasing inflation rate affect the economy in d eep roots and make the investment and saving difficult. People purchasing power will be make that will effect their standard of living and indulge the poverty level in the country as commodities will be difficult to bargain for with even more money in hand because due to inflation country will lose its real money value. (De Paiva Abreu, 2005).According to IBGE handle it is recorded from 1980 the Brazil inflation trend has gone through miscellaneous fluctuations. Historical data shows average of 411.8 % Brazil inflation rate that reached at highest rate of inflation of 6821.3 % in April 1990 that was the highest rate for all time. The low inflation rate of 1.7 percent was found in December 1998. The measure utilise to calculate inflation is consumer price index. Brazil important contribution in consumer price index are tobacco, food and alcohol that covers 31% of total, 15 percent by transport sector and communication carries 5 %. . (Brazil Inflation Rate)Statistical Evidence co mparing various countries inflation rateInflation Rate of various countries is showing the Brazil high rate of inflation as compare to other countries except India that has the inflation Rate o f 6.62. An increasing trend is quite threatening for Brazilian government for economic growth and required close consideration to control the rate in future in order to brace the economy.ConclusionThe Inflation rate and economic stability are closely related to one another and required close concern in order to stabilise the economy. Brazil increasing trend provide the threatening for its future concerns and shows that the government need to closely consider this regime in order to stabilize the economy and to achieve the economical growth in the world.