Brasília – The inflation forecast for this year from Brazilian financial market players increased for the fourth straight week, on the back of a fuel tax hike. This time, the Extended National Consumer Price Index (IPCA) projection changed up from 3.45% to 3.5%. The estimate is part of the Brazilian Central Bank’s weekly Focus Bulletin, based on a poll of banks.
The IPCA forecast for 2018 has remained at 4.2% for four weeks now. The estimates for 2017 and 2018 both fall short of the Central Bank’s 4.5% inflation target range midpoint.
The benchmark interest rate is seen at 7.5% at the end of both 2017 and 2018. The poll’s respondents expect Gross Domestic Product (GDP) to be up 0.34% this year and 2% in 2018.
*Translated by Gabriel Pomerancblum
