Brazilian Inflation to Be Below 6%, But Above Government’s Target

Brazil’s Broad Consumer Price Index (IPCA) is expected to end the year at around 5.5%, according to the majority of financial and market analysts surveyed every Friday by the Central Bank (BC).

The results of the most recent survey, announced Monday, November 21, by the BC in its Focus Bulletin, suggest that inflation in 2005, as measured by the IPCA, will be 5.53%, up slightly from last week’s forecast of 5.52%.

The analysts’ predictions continue to diverge from the government’s official target of 5.1% for consumer inflation. The near stability in the two most recent estimates, however, is less abrupt than the bounce from last month, when inflation estimates stood at 5.21% from the "market’s perspective."

When the impact of price readjustments in petroleum derivatives was felt, the analysts’ forecasts, on the average, were revised upward.

At the moment there are no signs of any price hikes in the short run. The BC survey projects a 0.40% increase in the IPCA this month and a 0.37% increase in December, contributing to a slight rise in the forecast for inflation over the next 12 months, from 4.64% to 4.65%. The inflation prediction for 2006, on the other hand, is down from 4.60% to 4.55%, according to the Focus Bulletin.

There exists a slight upward pressure on contractually administered or monitored prices (fuels, electricity, telephone services, water, medicines, education, public transportation, and others). The prediction for the cumulative annual readjustment in these prices and services rose from 7.90% to 8%.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Lula Wants Brazil to Be More Like China and Says Dollar Will Be Left Alone

Brazilian companies have to increase their productive capacity to compete internationally with rivals such ...

British Secret Service Helped Fight Communism in Brazil, Says New Book

There are some revelations on Brazil’s communism in the most detailed and authoritative history ...

In Brazil, Algeria President Urges Israel to Abide by the Law

The President of Algeria, Abdelaziz Bouteflika, who is representing the Arab League at the ...

Brazil, India and South Africa Mean Business

Last weekend the Chancellors of Brazil, India, and South Africa, the group known as ...

Brazil’s Model Law Not Enough to Protect Children, Says Expert

Despite its progress in relation to other countries, Brazil still has a long way ...

Global Warming Might Turn Brazil’s Amazon into Scrubland

The conference held in the United Kingdom early this month on climatic changes cautioned ...

By Leaving Congress Cardozo Makes Himself Greater But Diminishes Brazil

José Eduardo Cardozo is one of this generation’s most respected, successful politicians. Serving his ...

Still a Long Way to First World for Brazil

Brazil needs to chase new markets to show its potential. This option was defended ...

Brazil’s Beef Exports to Middle East and Africa More than Triples

The World Organization for Animal Health's (OIE) decision of recognizing the state of Paraná ...