Brazil’s Financial Market Expecting Inflation Below 5% in 2006

The first "Focus Bulletin" of the year, released today by Brazil’s Central Bank (BC), indicates that Brazilian financial analysts expect a Broad Consumer Price Index (IPCA) of 5.68%, for 2005.

The official number will be released next Monday, January 13, by the Brazilian Institute of Geography and Statistics (IBGE).

According to consultants, last year’s inflation was above the 5.1% goal. For this year, the bulletin foresees that the 4.50% inflation goal will be attained, in spite of the increased forecast (from 4.5% to 4.6%) for adjustments in administered prices (fuel, electricity, phone, education, water, etc.), in comparison to the previous bulletin.

The projection for the Consumer Price Index, measured by the Institute of Economic Research Foundation (IPC-FIPE), also went up, from 4.5 to 4.55%, in the city of São Paulo.

According to the economists consulted by the BC, December inflation was 0.35%, but prices tend to slightly rise to 0.40%. They also predict an increase in wholesale prices during 2006.

ABr

Tags:

You May Also Like

In Defense of Elitism in Brazil

Elitism is like cholesterol: there’s the good and the bad. Bad elitism stems from ...

After Decades of Neglect Brazil Starts Studies for 150 New Technical Schools

More than 150 technical schools will start being implemented in Brazil, starting January 2008. ...

Brazil’s Soft Coup: Calling It People Against Corruption Is Oversimplification

The impeachment of Brazilian President Dilma Rousseff represents the most significant test for Brazil’s ...

Brazil Will Use Digital TV to Expand the Internet

Brazil’s Minister of Communications, Hélio Costa, affirmed that there is an expectation that digital ...

Crisis what Crisis? Brazil Exports to Arabs Jump 50%

Brazilian exports to the Arab world returned to strong growth in March. According to ...

Brazil Approved to UN Security Council Seat by a Landslide

Brazil, Nigeria, Lebanon, Gabon and Bosnia were elected Thursday to non-permanent seats on the ...

Investigation on Central Bank Chief Drags Market Down in Brazil

Brazilian and Latin American receipts spent another day in the red, partly on regional ...

Copacabana's 12th Police District in Rio, Brazil

Murderers of French Nationals in Brazil Planned to Set Building Ablaze

The Brazilian police revealed that the three men who confessed to have murdered three ...

Bring the Brains Back

The strength of the real, and lower tariffs among other things, are making Brazil ...

Brazil’s Lula Is Not Afraid to Attend the World Social Forum in Venezuela

Brazilian President Luiz Inácio Lula da Silva is expected to participate in the American ...