Energy Crisis Pushes Inflation in Developing Countries, Such as Brazil, Turkey, and Argentina, Into Double Digits

Written by Daiane Souza

Published on 06/06/2022 at 07:05

Updated on 06/06/2022 at 08:13

Crise energética faz inflação de países em desenvolvimento, como Brasil, Turquia e Argetina, ir para dois dois dígitos – Canva

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Brazil’s Accumulated Inflation Is One of the Highest Ever Seen, and the Energy Crisis Is One of the Factors Influencing the Increase to Double Digits.

According to data shared by the IBGE, it is estimated that the National Consumer Price Index (IPCA) has reached 12.13% over 12 months in Brazil. Inflation is high for various reasons, but the high price charged for electricity due to the energy crisis is one of the factors influencing economic instability. However, it is important to emphasize that Brazil is not the only country suffering from this situation; other countries, such as India, Turkey, and even Argentina, which reportedly reached an inflation rate of 53% in its accumulated value during the year 2021, are also in this group.

High inflation in Brazil can cause a series of negative impacts, such as higher prices for consumers while their salaries remain stagnant. And even the devaluation of the Brazilian currency, which makes traveling abroad unfeasible due to the price of the dollar, which continues to flirt with R$ 5 despite the increase in the Selic rate. During the year 2021, the dollar price began to flirt with R$ 6, forcing the Ministry of Economy and the Central Bank to increase the basic interest rate to double digits.

Higher Inflation Due to the Energy Crisis Impacts Various Sectors, Including Civil Construction

Despite a decline of at least one-third in the prices of iron and steel over the last twelve months, it is estimated that they have doubled in value since the pandemic due to inflation in the sector and low productivity in mining, which is failing to meet external market demands. In fact, losses in mining are impacting the international electric vehicle sector, as Elon Musk reportedly decided to lay off at least 10% of his employees due to the crisis that “is coming.”

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Brazil Is Not the Only One Suffering from the Energy Crisis

It is worth noting that Brazil is not the only country experiencing an energy crisis; developing countries are also facing this type of issue since the onset of the pandemic. For instance, Argentina has an inflation rate over double digits. In Turkey, it is estimated that the energy crisis caused inflation of 7% just in the month of May. There is no doubt that solar energy is becoming an alternative to cope with or maintain stability in this crisis.

Energy Crisis Pushes Inflation in Developing Countries, Such as Brazil, Turkey, and Argentina, Into Double Digits

Brazil’s Accumulated Inflation Is One of the Highest Ever Seen, and the Energy Crisis Is One of the Factors Influencing the Increase to Double Digits.

Higher Inflation Due to the Energy Crisis Impacts Various Sectors, Including Civil Construction

Brazil Is Not the Only One Suffering from the Energy Crisis

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The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

On the other side of the planet, a Brazilian doctor operates on a patient in Porto Alegre while being in China, almost 19,000 km away, using a surgical robot that responds in 200 milliseconds in a procedure that seems like science fiction.

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Energy Crisis Pushes Inflation in Developing Countries, Such as Brazil, Turkey, and Argentina, Into Double Digits

Brazil’s Accumulated Inflation Is One of the Highest Ever Seen, and the Energy Crisis Is One of the Factors Influencing the Increase to Double Digits.

Higher Inflation Due to the Energy Crisis Impacts Various Sectors, Including Civil Construction

Brazil Is Not the Only One Suffering from the Energy Crisis

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

Lula says that the Brazilian naval industry will “thrash” China and Korea, while the government announces billions for barges, pushers, and a new hydro terminal in the Amazon.

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On the other side of the planet, a Brazilian doctor operates on a patient in Porto Alegre while being in China, almost 19,000 km away, using a surgical robot that responds in 200 milliseconds in a procedure that seems like science fiction.

China outpaces Elon Musk with Unitree humanoid robot available on AliExpress for $6,800, with free shipping and international delivery, turning billionaire technology into something anyone can buy online.

Lula says that the Brazilian naval industry will “thrash” China and Korea, while the government announces billions for barges, pushers, and a new hydro terminal in the Amazon.

Far from football, São Paulo idol and former national team player becomes a wine producer in Italy, transforms the nickname “Prophet” into his own brand, and now runs a winery, restaurant, and hotel in Piedmont.

Train of up to 111 tons leaves China for Brazil, crosses almost 20,000 km in up to 70 days by ship, and arrives in São Paulo in such a tight operation that a truck even had to deflate its tires to pass under a viaduct.