Recently, we see a rise in the Inflation rate, which is a simple consequence of an economic concept of supply and demand, and monetary expansion.
During the pandemic, some health policies prevented people and business from working and producing as usual (goods and services, value in general), causing prices to rise. Also, many others ended up unemployed because the places where these people used to work closed during the pandemic. However, the demand for basic products continued. The government had to support the community with monthly financial aid.
It also caused the Real to lose its value. The rise in prices of gas, for example, affects not only private consumers but the prices of products in supermarket in general, as they need to be transported from the country to the cities, and the transport is now more expensive.
"Strict closure policies, without any efficient planning, in addition to the huge increase in public spending caused by the pandemic, is now bearing fruits" says economist Renata Barreto (free translation).
Image Source: G1.com
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