O diferencial de inflação no Brasil

Abstract

This paper presents statistical features of observed dispersion in IPCA inflation rates for the main regions of Brazil from 1991-2013. Pursuing empirical evidence, monthly IPCA-IBGE data for the major cities, which are taken as representatives of the major geographic regions of the country, will be used. The goal of the research is to investigate whether inflation in Brazil is distributed evenly among its various regions or if there are significant differences among them. The potential effects of uneven regional inflation rates and their determinants will be pointed out. A brief comparison will also be made with another large monetary union, the United States. The analysis is made through traditional descriptive statistics. The data presented here shows significant inflation differentials in Brazil, since the stabilization of the economy until now days, it is found that the monthly rate of inflation differentials in Brazil is identical the annual rate of inflation differentials in the United States, showing that there is still a wide gap for prices to converge in Brazil.