Brazil's central bank published a report last week increasing its
inflation forecast for 2008 to 6%, from an earlier estimate of 4.6%. The central
bank's report claimed that inflationary pressures - initially coming from food
prices, oil and other commodities - have now disseminated and reached several
other products. The bank admitted that part of the problem originated
externally. But its report also blamed internal demand, from consumers and
growing investments, as well as government spending, for exacerbating
inflationary pressures in Brazil. The Lula administration, meanwhile, decided to
boost handouts given to the poor. End of preview - This article contains approximately 703 words.
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