Rising food prices in Brazil is nearing an end, says economist

In an interview with CNN this Saturday (17), the chief economist at EQI Asset, Stephan Kautz, said the rise in food prices in Brazil is nearing an end.

“We can see that this moment, this upward movement in food here in Brazil, is very close to an end. We had a shock in the price of milk that affected the entire dairy chain, which has a relevant weight in the Brazilian consumption basket. But we are starting to see that wholesale milk prices are falling. So, in the coming months this should be passed on to the consumer as well”.

The expert also assesses that consumers should feel a drop in food prices in up to three months. According to Kautz, record corn and soybean crops this year should help bring prices down.

Kautz also commented on inflation in Europe and the United States. For the economist, there are different scenarios between regions.

“Europe is rationing and now they must decide whether to impose an obligation to reduce people’s consumption of energy. We know this affects growth downwards, but it does not bring immediate relief to inflation. So inflation there should remain high, even with weaker growth. Meanwhile, in the US, weaker growth should help inflation slow in the coming months,” she said.

See more in the video above.