Brazil's Rousseff "quite anguished" over inflation

sábado 13 de junio de 2015 08:56 GYT
 

SAO PAULO, June 13 (Reuters) - Brazilian President Dilma Rousseff said she was "quite anguished" over the country's rising inflation rate and said her government would do "the possible and the impossible" to rein in prices.

In an interview with Globo TV broadcast on Saturday, she also said the government needed to conclude its fiscal adjustment plan as fast as possible to overcome a "temporarily difficult" economic situation.

"I'm quite anguished over inflation, I believe this is one of the things that worry me the most," Dilma said.

"I know this is temporary but I also know that ... it affects people's daily lives."

Brazil's consumer inflation hit an 11-year peak of 8.47 percent in May and economists say it may accelerate further before easing under pressure from an aggressive monetary policy campaign.

To bring inflation back to an official 4.5 percent target by the end of 2016, the central bank is expected to further raise the benchmark Selic rate in coming months.

Brazil's interest rates are already at 13.75 percent, the highest since January 2009.

"I'm worried because I think we'll have to make a huge effort. And I want to say this: we will do the possible and the impossible for Brazil to have a very stable inflation rate again, within the target," Rousseff said.

She said inflation was expected to come down by the end of the year but also cautioned that this depended on factors outside the government's control. (Reporting by Eduardo Simoes, writing by Walter Brandimarte; Editing by Gareth Jones)