Brazil hit by demos over transport prices

Agencies/Brasilia

Violent demonstrations over higher public transport prices have hit several Brazilian cities, including Sao Paulo where 50 people were hurt and 15 detained in clashes with police.

Police said about 2,000 demonstrators blocked traffic late Thursday in several districts of Sao Paulo, Brazil’s sprawling economic capital which is home to 11mn people.

Organisers said the protest drew 6,000 people.

Some demonstrators vandalised bus stops and metro stations while others burned garbage cans to protest a 7% hike in bus, metro and train ticket prices from $1.5 to $1.6.

Some 50 people were hurt in the disturbances and most of the 15 people arrested by police were freed early yesterday.

Similar protests were held in other Brazilian cities such as Natal in the northeast, Goiania in the center and Rio, where two persons were injured, Fresh demonstrations are planned nationwide.

Consumer prices have edged up 0.3% in Brazil last month, fueled by higher medicine, clothing and housing prices, with 12-month inflation at 6.5%, the state statistics agency said yesterday.

The May increase, in line with market analysts’ forecasts, was lower than the 0.5% recorded in April and the lowest since June 2012.

The Brazilian Geography and Statistics Institute (IBGE) said medicine prices increased by 0.9% in May, clothing by 0.8% and housing by 0.7%.

Central Bank authorities want to bring inflation down to 4.5% this year. Last month, the central bank raised its key interest rate by 0.50 points to 8% to control rising inflation, the second increase within weeks.

 In April, the bank’s monetary policy committee pushed the rate up by 0.25 points to 7.5%, the first increase since July 2011. Experts were alarmed in March when it was confirmed that 12-month inflation reached 6.59%, above the official upper limit of 6.5%. In 2012, Brazilian consumer prices rose 5.8% after a 6.5% hike the previous year, the highest level in seven years.