Prior to 1999, the Brazilian government had no preferred target inflation rate. From 1999 onwards, it introduced target rates with both an upper and a lower limit. The diagram illustrates the inflation rate from 1994 to 2003 and the target rate from 1999 to 2003. What conclusion can be drawn from the diagram?
- AThe Brazilian government achieved its target in each year from 1999 to 2003.
- BThe inflation target was continuously reduced.
- CThe lowest level of inflation was achieved when an inflation target was used.
- DThe inflation rate was more stable after inflation targets were introduced.