In this sense, the CEI pointed out that the productive sector “had to face rising costs and problems in global supply chains that the pandemic itself produced.” According to the analysis, the increase in the price of fuels globally, along with the so-called “container crisis“, caused the increase in the cost of freight transport.
In Europe, “the growing demand caused by the economic recovery was met with a limited supply due to the increase in the international price of natural gas.” The increase in the price of coal, in addition to the low levels of water and wind (for seasonal meteorological reasons), “reduced the possibilities of increasing the electricity supply through alternative sources,” the CEI added.
He later pointed out that “According to what was reported by the European Union, the wholesale price of electricity in the countries of the bloc suffered a year-on-year increase of 200%, which drove, to a lesser extent, the rise in retail prices (9% until August) “. The rise in commodity prices is also among the reasons behind the upward projections of the International Monetary Fund (IMF).
The agency expects the average growth of the general price level in developed countries “to double this year compared to 2019,” the CEI said. Specifically, this year inflation in these countries would be 2.28%, when in 2019 and 2020 it had been 1.4% and 0.7%, respectively.
In some cases, the report highlighted, historic marks are being recorded, such as in Spain, where prices rose 2% in October and 5.5% year-on-year, the highest rebound in 29 years.
The Center also recalled that for developing countries an average variation of 5.5% is expected this year, compared to 5.1% registered during 2019 and 2020. In this group, the case of Brazil stands out, which registered in September a rate of 1.16% (the highest monthly variation since 1994) and a 10.25% year-on-year growth. More recently, last October, Brazilian inflation was 1.25% compared to the previous month, with which the jump compared to a year ago increased to 10.67%, according to the IBGE (Brazilian Institute of Geography and Statistics) .