Brazil Central Bank Monitoring High Energy Prices

Governor of the Central Bank of Brazil, Roberto Campos Neto, said on Friday that he is closely monitoring the increasing electricity prices with the largest economy in Latin America suffering from the worst drought in decades, Reuters reported.

High energy prices are contributing to the increasing inflationary pressures, which are expected to remain in place until next year.

The head of the central bank explained that high inflation is a worldwide phenomenon with expectations for tightening monetary policies in developed economies expected to impact emerging markets in the coming period.