• Categories
  • Archives

Financial Market Forecasts 4.5% Inflation for Brazil in 2006

Brazil’s financial market gives every indication that the Brazilian Broad Consumer Price Index (IPCA) will amount to 4.5% in 2006, in line with the government’s official target, and that it was 0.35% in December, which means a cumulative IPCA of 5.68% in 2005.

This information is part of the Focus bulletin issued today by Brazil’s Central Bank (BC).

The BC’s survey, which is based on interviews conducted every Friday with a hundred market analysts and representatives of financial institutions to detect trends in the major economic indicators, proved accurate in its forecast for inflation in 2005, since the interviews conducted on December 30, 2004, predicted a year-end 2005 IPCA of 5.70%, above the official target of 5.1%, as is now being confirmed.

The rest of the market’s projections for inflation in 2005 were not as accurate. Mainly because the prices that are administered by contract or monitored (fuels, electricity, telephone services, water, sanitation, education, health, and others) rose by more than was expected: 8.80%, rather than 7.09%. The forecast for 2006 is for an increase of 4.50%.

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Your email address will not be published.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

Brazil’s Wilderness Gets Satellite Phone

Texas-based CapRock Communications, a global provider of industrial-grade satellite communication services, announced February 22 ...

Brazil Gets Argentina’s OK to Resume Pork Export. Chile and Russia Might Follow.

Argentina has just announced that it would resume importing boneless pork and other pork ...

Brazil Plays Its China Card

Brazilian Minister of Foreign Relations, Celso Amorim, in China with President Lula, said that ...

Domestic and International Flights Get Slight Increase in Brazil

Brazil saw in April a 3.5% increase in international departures from Brazilian airports when ...

Brazil Will Go to Nigeria for Gas If Bolivia’s Price Hikes Are Too High

Brazil is considering buying natural gas from other countries including Nigeria after its main ...

Brazil: Unions Pass the Hat to Pay Lula’s Fine for Violating Electoral Law

The Superior Electoral Tribunal of Brazil, the TSE, again fined Brazilian president Luiz Inácio ...

Lula Wants Brazil to Be World’s Biofuel Supplier

President Luiz Inácio Lula da Silva affirmed that Brazil has the necessary requirements for ...

Standard & Poor’s Rewards Brazil’s Fiscal Discipline with a Better Rating, a BBB

In the midst of an economic deterioration in the global economic outlook for the ...

Foreigners in São Paulo Earn Double What the Locals Make

Compared with Brazilian migrants, foreign immigrants are the group of migrants living in the ...

Communist Aldo Rebelo is Brazil's House speaker

Brazil’s Strange Idea of Democracy

Brazil had a new president for a day on November 13, 2006, a communist ...