São Paulo – The Brazilian Central Bank released its Focus Bulletin this Monday (14) with the 13th straight week-on-week increase in inflation forecast this year. The financial institutions polled for the bulletin believe the Extended Consumer Price index (IPCA) will be up 10.61% by the end of 2015. Last week’s forecast was 10.44%. For 2016, inflation is expected to be 6.8%, up from 6.7% last week.
Government news outlet Agência Brasil said Gross Domestic Product (GDP) should be down 3.62% this year, up from 3.5% in last week’s forecast. GDP shrinkage forecast for 2016 is now 2.67%, the estimate from last week had been 2.31%. Still according to the Focus Bulletin, the US dollar should be worth BRL 3.90 by the end of 2015 and BRL 4.20 by the end of next year.
*Translated by Gabriel Pomerancblum
