Brasília – This Thursday (30), Brazil’s National Monetary Council (CMN) set the official 2018 inflation target (measured by the National Extended Consumer Price Index, the IPCA) at 4.5%. The target allows for a leeway of 1.5 percentage point up or down.
As a result, the IPCA can reach 6% at the most in 2018. The inflation target is always set two years ahead of time by the CMN at its June meeting, and it has remained at 4.5% since 2005.
The Central Bank is required to meet the target set by the CMN. When it fails to do so, it must submit a letter to the Finance Ministry explaining the reasons for its failure to comply. As per the Inflation Report issued last Tuesday (28) by the Central Bank, it forecasts 4.7% inflation next year.
*Translated by Gabriel Pomerancblum
