Following a series of sucessive drops in inflation expectations, the latest weekly market survey by the Central Bank (the Focus survey) found that consultants and analysts in financial institutions are now forecasting an increase in the Broad Consumer Price Index (IPCA) of 4.55% for the year, which is slightly above the government’s inflation target of 4.50%.
The latest Focus survey found the market expecting a sharper increase in state-controlled prices, such as fuels, electricity, telephone, public transportation, water, education and medicines, among others.
The IPCA is used by the government to gauge its inflation targets. It measures the cost of living for families with incomes of one to forty monthly minimum wages (US$142 to US$5,664) in eleven metropolitan regions.
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