# Heated economy speeds up dollar pass-through to prices

> Studies show that strong job markets and robust demand have sped up how quickly the real's depreciation feeds into manufactured goods prices in Brazil. The analysis estimates that the initial devaluation from December to May has already added to the 2024 IPCA inflation index, with remaining pass-through still to come.

- Date: 2024-09-18 · published 2024-09-18T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/12469-heated-economy-speeds-up-dollar-pass-through-to-prices
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Faster pass-through of currency weakness into Brazilian consumer prices can force the central bank to keep rates higher for longer, supporting the real and tightening domestic demand for feed-linked livestock products. The effect on feed commodity prices is indirect.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-12-11 | [FX Daily: US dollar at cruising speed \| ING THINK](https://feedsoft.ai/events/55508-fx-daily-us-dollar-at-cruising-speed-ing-think.md) | -1.8% | -1.6% |
| USDBRL | 2022-06-28 | [US Dollar has upside through the end of this year and into the early parts of 2023 – Wells Fargo — Octa](https://feedsoft.ai/events/41146-us-dollar-has-upside-through-the-end-of-this-year-and-into-the-early-parts-of.md) | +3.5% | +3.1% |
| USDBRL | 2018-06-28 | [How a Rising U.S. Dollar Puts Argentina's and Brazil's Economies at Risk](https://feedsoft.ai/events/64805-how-a-rising-u-s-dollar-puts-argentina-s-and-brazil-s-economies-at-risk.md) | +1.8% | -3.2% |
| USDBRL | 2019-05-14 | [Brazil's Real slides past 4.00 to the US dollar as China/US trade dispute escalates — MercoPress](https://feedsoft.ai/events/59265-brazil-s-real-slides-past-4-00-to-the-us-dollar-as-china-us-trade-dispute.md) | +3.4% | -3.0% |
| USDBRL | 2017-08-08 | [Brazil: Real rises to near three-month high in August \| Economy  \| POST Online Media](https://feedsoft.ai/events/69658-brazil-real-rises-to-near-three-month-high-in-august-economy-post-online-media.md) | +1.6% | -0.1% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/economy/news/2024/09/18/heated-economy-speeds-up-dollar-pass-through-to-prices.ghtml

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.