Investors Fear Brazil Is Stuck in Low Growth and High Inflation

50 reais Consumer prices in Brazil ended 2012 near the top of the Brazilian central bank's target range for the third year running, prompting concern from economists that the country is stuck in a phase of low growth and high inflation.

Brazilian inflation in December was 5.84% against a year earlier - well above the middle of the central bank's target zone of 4.5% plus or minus two percentage points - despite economic growth last year that was estimated to have been only about 1%.

The central bank, which said the December consumer prices figure was on track with its forecasts, is keen to maintain the credibility of its inflation-targeting regime in a country where prices remain a sensitive issue.

Brazil's present economic stability is based largely on its achievement in vanquishing runaway inflation, which in earlier decades was measured in hundreds rather than single-digit percentage points.

Alexandre Tombini, the governor of the Central Bank of Brazil, said the 2012 figure was less than in 2011, when inflation touched the top of the bank's range of 6.5%. Inflation was therefore "converging" towards the center of the target as the bank had promised.

Tombini said inflation was boosted in the second half of 2012 by several “shocks”, such as a rise in the price of agricultural commodities.

"In the short term, inflation is showing some resistance, but there are indications it will return to a downward trend in 2013."

Economists said they did not expect inflation this year to breach the upper end of the central bank's target range because economic growth was predicted to remain relatively tepid.

Many economists are forecasting the economy will expand by 3.5% this year, but see the possibility that the figure could be lower.

Much would depend on whether the government would be able to implement a cut in electricity tariffs, which will lower prices for consumers by as much as 16%, said Capital Economics.

"In the absence of an immediate cut in tariffs, inflation is likely to rise above 6% in the first quarter of this year," added the London-based research house.

Mercopress

 

Who's Online

We have 5125 guests and no members online

Statistics

Users
2
Articles
17073
Articles View Hits
119342104

----------

Choosing brazilian hair weave for perfect hairstyle at BestLaceWigs.com

----------

Find fashion dresses online at factory price on 27Dress.com

----------

cheap cocktail dresses

----------

Brazilian Male Enhancement Review at Breastsenlargementreview.com

----------

Brazilian Breasts Enlargement Cream

----------

Brazilian Top Breast Enlargement Reviews

----------

Brazilian Male Enhancement Pills at Breastsenlargementguide.com

----------

bruidsmeisjes jurken

----------

vestidos de noche

----------

ballkleider

----------

Cheap Prom Dresses

----------

Churrasco Equipment and Brazilian Meat Skewers

----------

Vestidos Noiva em Weddingmart.pt

----------

Australia Fashion Online Outlet store

----------

Robe de cocktail

----------

Our good partner Everbuying.com provides wide selections of products at best price for worldwide free shipping.

----------

Cheap Dre Beats

----------

Buy Cheap Nike Mercurial Soccer Cleats from MercurialCity now!

----------

Shopping Reviews

----------

----------

robe de cocktail

----------

Cheap Wedding Dresses

----------

bruidsjurken

----------

Find Me Handbags

----------

Wholesale Handbags Blog

----------

Submit Articles to Google Website List

----------

Brazilian Eyelash Treatment at Search Wholesale Handbags

----------

Brazilian Tested Lash Growth Serum at Wholesale Handbags Purse

----------

Chinese Wholesale Handbags

----------

Vestidos Noiva em Weddingmart.pt

----------

USA Wholesale Handbags

----------

Brazilian Eyelash Enhancer at Find Wholesale Handbags

----------

Soccer shirt

----------

The best mother of the bride dresses at TidebuyBridal.com

----------

Cheap human hair wigs at ishowigs.com

----------

cheap prom dresses at JDdresses.com

----------

Special Occasion Dresses

----------

Churrasco Catering and Churrasco Skewers

----------

brautjungfernkleider

----------

Australia Fashion online Outlet

----------

read more about Writing-Expert.com writing service

----------

Brazilian Cheap Handbags and Purses at Baginc

----------

Submit Website & Articles to Bing Web Directory

----------

Get Me Earrings

----------

Wholesale Clothing On Sammydress.com

----------

Brautkleider 2013

----------

Global Online shopping with free shipping at Handgiftbox

----------

Search