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:

You May Also Like

Renewable Sources Account for Close to Half of Brazil’s Energy Supply

The share of renewable sources in domestic energy supplies rose to 44.5% in 2005, ...

John Deere Lends Its Name to Sugar Cane Harvesting Machines in Brazil

The renowned John Deere brand name will now make its way to sugar cane ...

Conquering the Middle East and Africa with Brazilian Sugar and Spice

To guarantee the opening of markets in the Middle East and North Africa, group ...

Bad Idea, Say Brazil’s Military to Sharing Dirty War Files

The Brazilian Armed Forces weren’t happy at all at the declarations of the Minister-Chief ...

Brazil’s Petrobras Wins Tender for Lybian Oil

Brazilian oil giant Petrobras was one of the winners of the international tender for ...

Brazil Offers Loans to Help Reduce Greenhouse Gases

A new loans and grants scheme in Brazil will fund company initiatives that help ...

43% of World’s Chicken Come from Brazil

Earnings in dollars from Brazil’s chicken exports rose 44.2% in 2004, finishing the year ...

Bolivians Are Becoming Beggars in Brazil’s Streets

The increase in Bolivian immigrants in Brazil is one of the social consequences of ...

Brazil TAM and LAN Chile Start Code-Sharing Throughout South America

Starting November 5, Brazil's flagship airline TAM and the LAN alliance, which includes LAN ...

Brazil Loses 4.5 Million Tons of Soybeans to Rust

Brazil’s Ministry of Agriculture, Livestock, and Supply’s Department of Plant Health and Inspection is evaluating ...