Prices in Brazil, both wholesale and retail, are signaling stability, according to the Focus Bulletin, released February 9 by Brazil’s Central Bank. The bulletin represents a weekly survey of 100 market analysts and representatives of financial institutions with regard to the major tendencies of the national economy.
According to the bulletin, the Broad Consumer Price Index (IPCA) is expected to end the year up 5.75%, a tiny bit higher than the 5.74% forecast in last week’s analysis.
This prediction clashes with the projection made by the University of São Paulo’s Institute of Economic Research Foundation (Fipe), which lowered its Consumer Price Index (IPC-Fipe) inflation forecast from 5.47% last week to 5.39%.
On the wholesale front, the General Market Price Index (IGP-M) raised its prediction for this year’s inflation from 6.20% to 6.21%. The Focus survey continues to uphold a 7% cumulative increase in administrative price rates (fuel, electricity, telephone services, etc.).
The market expects that the Brazilian Institute of Geography and Statistics (IBGE) will announce that January’s increase in the IPCA will amount to 0.60%. The expectations for inflation in February remain the same as they were last week, 0.65%.
Translation: David Silberstein