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:

Ads

You May Also Like

Market Betting Brazil Will Lower Key Interest Rates 2.5% to 14%

Latin American stocks were mixed, Monday, April 10, with Brazilian shares falling on concerns ...

Brazilian Appointed as UN Representative in Haiti

Brazil’s Ministry of Foreign Relations (MRE) received the nomination of the Brazilian Luiz Carlos ...

Last Group of 108 Palestinian Refugees Is Received in Brazil

A last group of Palestinian refugees arrived in Brazil this Tuesday, November 6. They ...

Brazil’s Petrobras Has Ambitious Plans for Oil Drilling in Angola

Brazilian state-owned oil company Petrobras plans to increase its participation in petroleum exploration in ...

Brazil’s Vice-President Undergoes Angioplasty. All Is Well.

Brazil’s Vice-President of the Republic and Minister of Defense, José Alencar, underwent a heart stint ...

For Brazil’s Beef Industry the Worst of Crisis Is Over

Brazilian exports of raw beef are starting to show signs of recovery. Figures supplied ...

Brazilian high school classroom

Will Brazil Give Its Grandchildren the Chance for All It Denied Its Children?

Last month the Communist Party of Brazil (PCdoB) marked its 85th birthday. The Republic ...

Brazil to Create New Organ Transplant Centers in 16 States

Brazil's Ministry of Health and the Syrian-Lebanese Hospital (HSL) announced the establishment of a ...

Brazil Under the Military Kept Argentina’s Bases to Catch Subversives

Argentina's dictatorship, which lasted from 1976 to 1983, held information bases in São Paulo ...