Brazilian inflationary dynamics from 2011 to 2019: A multisector approach

Abstract

This work aims to analyze Brazilian inflationary dynamics between 2011 and 2019, performing a structural decomposition analysis of the Input-Output Price Model Matrix. Our framework is the Surplus Approach and the cost-push inflationary perspective. The period is divided into three phases. In the first one, 2011-2014, the major cause of Brazilian inflation was the international quotation of commodities in local currency. In the second one, 2015-2016, the main factor is the profit margins behavior, followed by unit labor cost. In the last phase, 2017-2019, once again, commodity prices in local currency became the major inflation cause in Brazil.