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:

You May Also Like

Brazil Is a Cultural Desert for the Young

The Brazilian government should create a special secretariat to deal with issues of concern to ...

Lula’s Candidate to the Presidency Vows Ruling Brazil with Woman’s Soul

Brazilian president Luiz Inácio Lula da Silva’s former cabinet chief, Dilma Rousseff, was officially ...

A Taboo Word at Brazil’s Arab Summit: Democracy

The Summit of South American-Arab Countries held in Brazil was not restricted to economic ...

Industrial Output Jumps 6% in Brazil. Only 2004 Was Better

Brazil's industrial output grew last year at its fastest pace since 2004, jumping 6% ...

Brazil and the New Economic Miracle. The US Has a Lot to Learn!

When the sovereignty wealth funds of the world (including countries such as China, Saudi ...

Brazil Is Front Runner in Coffee Race

The recent mapping of the coffee genome by Brazil should open numerous possibilities for the ...

Brazil’s Mafia Boss Orders End of Rebellion from Maximum Security Cell

According to daily O Estado de S. Paulo, the order to stop the rebellions ...

Brazil’s Pantanal, a Biosphere Reserve, in Danger of Disappearing in 45 years

At an average annual devastation rate of 2.3%, the Pantanal, the world’s largest flood ...

The Importance of Being Brazil

Brazil has the ninth largest economy in the world, its market size is about ...

With Nepotism Banned in Brazil by Supreme Scores Lose Jobs in Courts

By a vote of 9 to 1, the Brazilian Supreme Court (Supremo Tribunal Federal) ...