Brazil’s central bank chief says inflation decreasing due to low-cost imports from China
Gabriel Galipolo confirms imports from China have grown while their prices have fallen, easing inflation in Brazil in the short term
“It is, in a sense, offsetting an impact that would otherwise be even greater, both for the current account deficit and for inflation,” he said.
Disinflation refers to a slowdown in the pace of price increases, while deflation means an outright fall in prices, both seen by economists as signs of weakening demand that can discourage investment and spending and hurt growth even as prices drop.
Galipolo’s remarks came as Brazilian officials confront the effects of what economists describe as China’s industrial oversupply.
After years of relying on property construction to fuel growth, Beijing has shifted investment into manufacturing.