International

Brazil April inflation hits 26-year high

AFP

Brazil’s inflation rate hit a 26-year high for the month of April, the government said Wednesday, as spiraling prices continued to defy the central bank’s push to rein them in.

The national statistics institute, IBGE, said inflation in the 12 months through April rose to 12.13 percent, the highest since 2003 and well above the central bank’s target of 3.5 percent.

The rate for April came in at 1.06 percent, the highest for the month since 1996, IBGE said.

That was worse than the forecast of one percent by analysts polled by business daily Valor.

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Food prices were the main inflation driver in April, rising more than two percent.

Fuel prices remained an underlying factor, up more than 33 percent in the past year.

“The strength of price pressures is likely to keep policymakers at the central bank concerned,” William Jackson, chief emerging markets economist at consulting firm Capital Economics, said in a note.

Brazil’s central bank has been on one of the most aggressive monetary tightening cycles in the world, rapidly hiking the key interest rate from two percent in March 2021 to 12.75 percent currently.

But inflation has so far remained stubbornly high, hurting Brazilians’ wallets — and President Jair Bolsonaro’s popularity as he gears up to seek reelection in October, trailing leftist ex-president Luiz Inacio Lula da Silva (2003-2010) in the polls.

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International

Air Canada suspends JFK flights amid soaring fuel costs linked to Iran conflict

Air Canada announced on Friday that it will suspend its flights from Montreal and Toronto to New York’s John F. Kennedy International Airport from June through late October, citing rising jet fuel costs driven by the conflict involving Iran.

“Since the beginning of the conflict with Iran, some routes and less profitable flights have become economically unviable, so we are making adjustments accordingly,” the airline said in a statement.

Despite the suspension, the carrier confirmed it will continue operating 34 daily flights from six Canadian cities to New York’s LaGuardia Airport and Newark Liberty International Airport.

Air Canada expects to resume its JFK operations after October 25.

Meanwhile, Iran announced the reopening of the Strait of Hormuz amid a temporary ceasefire in the region. However, jet fuel shortages could persist even if the truce holds.

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Fuel accounts for between 25% and 30% of operating costs for most airlines, and carriers worldwide have responded to the crisis by raising fares and suspending select routes due to safety and profitability concerns.

International

UK braces for potential CO₂ shortage amid Middle East tensions

The government of United Kingdom is preparing contingency measures amid fears of a potential shortage of carbon dioxide (CO₂), which could impact the agri-food industry if the Strait of Hormuz remains blocked due to the ongoing conflict in the Middle East, The Times reported on Thursday.

According to the newspaper, officials assessed this scenario during a recent crisis meeting aimed at evaluating the consequences of a prolonged conflict, triggered on February 28 by joint attacks from United States and Israel against Iran.

Under this scenario, CO₂ supplies—primarily a byproduct of fertilizer production using natural gas—could fall by up to 18%, affecting multiple sectors including agriculture and food production.

The gas is widely used in the slaughter of pigs and poultry, as well as in extending the shelf life of packaged foods. Breweries could also face disruptions due to reduced availability.

“I don’t want to comment on a leak, but now that the information is out there, I hope people feel reassured knowing we are working on it,” said Peter Kyle, Secretary of State for Business and Trade, in remarks to Sky News.

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While a drop in CO₂ supply is not expected to cause major shortages in supermarkets, it could limit product variety, The Times noted, citing access to internal government documents.

To mitigate the impact, authorities are considering prioritizing CO₂ supply for critical sectors such as healthcare and civil nuclear energy, where it is used in cooling systems for blood reserves, organs, vaccines, and electricity generation. The government may also request domestic producers to increase output.

Central America

El Salvador and Paraguay approve 2026–2028 cooperation program

The governments of El Salvador and Paraguay approved the 2026–2028 Cooperation Program, which includes six joint development projects, according to Salvadoran Vice Minister of Foreign Affairs Adriana Mira.

Mira stated that El Salvador will act as the “main provider of cooperation,” contributing five initiatives focused on road infrastructure, tourism, and local development. She also noted that one of the projects will be led by the Paraguayan side, although no further details were disclosed.

The agreement was reached during the Second Meeting of the Joint Commission on Technical and Scientific Cooperation between both countries.

According to Paraguay’s Ministry of Foreign Affairs, the First Meeting of the Political Consultation and Bilateral Coordination Mechanism was also held, with the participation of Vice Minister Víctor Verdún.

In an official statement, the Paraguayan government reported that both delegations agreed to identify mechanisms to promote competitiveness, economic growth, and market access. They also committed to signing agreements related to air transport cooperation.