In Brazil, Market Prices Down, Government Prices Up

Brazil’s Focus Bulletin, released today by the Central Bank, indicates for the third week in a row that the pace of retail price increases has lost steam.

Forecasts for this year’s inflation in terms of the Broad Consumer Price Index (IPCA) have been lowered from 7.37%, two weeks ago, to 7.31%, last week, and 7.13%, in this week’s survey.

Nevertheless, there was a slight increase in estimates for inflation in 2005, from 5.80% to 5.81%.

There was a small improvement in predictions for the IPCA this month (down from 0.46% to l.45%) and for the cumulative IPCA over the 12 coming months (down from 6.18% to 6.17%). On the other hand, expectations for inflation in November rose from 0.56% to 0.57%.

The poll also indicates a decline in terms of the Consumer Price Index (IPC), compiled by the Economic Research Institute Foundation (Fipe) at the University of São Paulo. The prediction for inflation in the capital of São Paulo this year was lowered from 6.45% to 6.24%.

Unlike free market prices, which show signs of relief for consumers, administered prices (fuel, telephone services, electricity, and others) continue to climb.

The consultants and market analysts interviewed in the Central Bank’s weekly survey estimate that this year’s cumulative rate adjustments will amount to 8.58% this year, as against 8.50% in last week’s survey, while their expectations for 2005 rose from 7% to 7.20%.

Agência Brasil

Translator: David Silberstein

Tags:

Ads

You May Also Like

Should I Go Back to Brazil? Definitely Maybe

Last week Time magazine had a cover feature about moving up in America compared ...

Finance Minister Expects 4.5% Growth in Brazil’s GDP

Brazil’s Minister of Finance, Guido Mantega predicts that the Gross Domestic Product (GDP), which ...

At 8.2%, Unemployment in Brazil Hasn’t Been That Good in 5 Years

The job market in Brazil seems to be improving. Unemployment rate among the Economically ...

Germany’s Anti-Nuclear Stance Is a Warning Brazil Can’t Ignore

In 2009, I went to Chernobyl. Thirty years after the accident it was still ...

Lula Urges Congress to Probe Corruption Without Paralyzing Brazil

Speaking to the nation during his fortnightly radio program, “Breakfast with the President,” Brazilian ...

US Treasury Secretary Heading to Brazil to “Build the Middle Class”

United States Treasury Secretary Henry Paulson will make a week-long trip to South America ...

How Brazil’s and LatAm’s Banks Weathered the Global Meltdown

Brazil's and Latin America's financial systems have passed the Financial Times magazine test. In ...

Mercosur Members Gather in Brazil in Effort to Fix Fractured Group

Mercosur presidential summit next week in Brazil has on the table an agenda of ...

Were Diamond Miners Behind Brazilian Indianist Murder?

Brazilian Indianist, José Apoena Soares de Meirelles, 55 years old, was assassinated in Porto ...

Brazil Hailed as Model in Ethanol in International Encounter

Brazilian ethanol production was mentioned in the majority of the lectures given, January 23, ...