• Categories
  • Archives

Brazil Expecting a 5.6% Inflation Rate in 2005

The forecast presented by Brazilian analysts and financial consultants for the Broad Consumer Price Index (IPCA) wandered a tad more away from this year’s Brazil’s official inflation target of 5.1%.
According to this week’s Focus Bulletin, released Monday, November 28, by the Central Bank (BC), projections for this year’s inflation rate rose from 5.53% last week to 5.59%.

This increment reflects higher estimates for this month’s IPCA, expected to be up 0.45%, rather than 0.40%, in last week’s projection.

On the other hand, the Focus Bulletin stayed with its estimate of 0.37% for the IPCA in December and lowered its forecast for inflation over the next 12 months from 4.65% to 4.64%.

The analysts’ predictions continue to diverge from the government’s official target of 5.1% for consumer inflation. The near stability in the three 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%.

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%.

ABr

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Your email address will not be published.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

Arriving at Jobim Airport by Michael Rimbaud

The Colors of Brazil Through Rimbaud’s Brushes

As a keen observer of the comings and goings of his neighborhood, longtime Lower ...

Brazzil Hates Brazil!

Brazil has a very small minority which is fiercely anti-American. These people are jealous ...

With Potential for 20 Million Tons Brazil Catches Only 1 Million Tons of Fish a Year

The Ministry of Fisheries and Aquaculture of Brazil has plans to invest as much ...

Brazilian Sound, Well Beyond Bossa Nova

Brazil is a country rich in music, and there are various different rhythms that ...

Brazil’s Defense Minister Bumpy Ride Ends Here

Jurist Nélson Azevedo Jobim, 61, a former Supreme Court chief, accepted Brazilian President, Luiz ...

Brazil: How to Kill a Landless

There have been frequent episodes when Brazilian estate owners used terrorist methods against the ...

Mired in Scandal, Brazil’s Lula Offers Ministries to New Allies

Scandal shocked Brazilian President Luiz Inácio Lula da Silva announced Thursday a new plan ...

Brazil’s Gun Referendum Exposes Country’s Open Wound of Violence

The legalization or ban of guns and ammunition trade is the putative matter to ...

A Touch of Stone in Brazil’s Spring-Summer Shoe Collection

Stones, natural and synthetic, will find a way to the feet of Brazilian women ...

Brazil Accuses EU of Moving Backwards on WTO Agreement

In a press conference Tuesday, January 24, Brazil’s Minister of Foreign Relations, Celso Amorim, ...