Guido Mantega, Brazil’s Minister of Finance reassured the country today after a sharp rise in inflation for March. Mr. Mantega explained that this spike in the figures is only temporary and is accounted for by a recent surge in food and transport costs that is sure to subside soon.

The national Consumer Price Index the IPCA jumped by 0.92 % for March, certainly a worrying increase. However, the annual figure of 6.15% is still within the countrys pre-set tolerance limit of six point five per cent.

The Minister and his team ( and indeed everyone else in Brazil) will be keeping a close eye on the situation in future to see if their optimism is justified.