Market Expecting Higher Inflation for Brazil in 2006

Expectations for inflation this year in Brazil were raised slightly in the past week, as forecasts for the Broad Consumer Price Index (IPCA) rose from 4.60% to 4.68%.

This level is higher than the 4.5% projected by the government as its official target for inflation in 2006, as measured by the IPCA.

These figures appear in Monday’s, February 6, edition of the Central Bank’s weekly Focus Bulletin, based on information gathered from financial market analysts.

In light of January’s record trade surplus (exports minus imports), the analysts also raised their forecasts for this year’s trade surplus, from US$ 39 billion to US$ 40 billion.

According to the Focus Bulletin, the dollar should be worth R$ 2.35 at the end of 2006, as against last week’s prediction of a R$ 2.39 exchange rate.

Surplus

In the first week of February, with three business days, Brazil exported US$ 1.293 billion and imported US$ 1.148 billion, for a trade surplus of US$ 145 million.

So far this year the trade balance has registered US$ 10.564 billion in exports and US$ 7.475 in imports, producing a surplus of US$ 2.989 billion.

These figures were announced by the Ministry of Development, Industry, and Foreign Trade.

ABr

Tags:

You May Also Like

Finance Minister Denies Resignation Rumors and Gives Brazil a Boost

Latin American stocks spiked up, thanks to lower oil prices, pleasing economic reports, strength ...

Brazil Gives Farewell Party to Pan Athletes But Nobody Comes

"Good but not perfect," that's the way Mario Vazquez Raí±a, president of the Pan ...

PMDB Party Gets 3 Cabinet Posts in Exchange for Good Will in Brazil

Brazil’s presidential spokesman, André Singer, announced Wednesday, July 6, that Brazilian President Luiz Inácio ...

Public Defender Gets No Respect in Brazil

Brazil’s 1988 Constitution assigned state governments responsibility for establishing public defenders offices in the ...

Brazil Listens to Lagarde But Doesn’t Back Her for IMF Chief

France’s Finance Minister Christine Lagarde pledged to push reforms to give Brazil and other ...

Leader of Scale Model Market in Brazil Goes International

Brazilian company Adhemir Fogassa Maquetes, which currently has an 80% share of the scale ...

Death Squads and Impunity Still Common in Brazil

Brazil is a constitutional federal republic composed of 26 states and the Federal District. ...

FAO Points to Brazil as Example to the World in Bio-Energy

Under the pressure from soaring oil prices and growing environmental constraints, momentum is gathering ...

Coming Out in Brazil

A candid talk with Beyond Carnival’s author James N. Green. Says he, "I understood ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`