Brasília – Financial institutions surveyed by the Brazilian Central Bank (BC) expect the inflation, as measured by the Extended National Consumer Price Index (IPCA) to reach 9.99% this year. Last week, the forecast was of 9.91%. This is the eighth straight time the forecast is revised up. For 2016, the forecast went up for the 14th straight week. According to the Focus Bulletin released this Monday (9th), the forecast went from 6.29% to 6.47% next year.
The high inflation is followed by recession. The Brazilian economy should shrink 3.10% this year. This was the 17th consecutive worsening of the forecast for the Gross Domestic Product (GDP), the sum of all goods and services produced in the country. Last week, the forecast stood at 3.05%. Next year, the forecast for a retraction went from 1.51% to 1.9%, the fifth consecutive review. The forecast for the dollar remains at BRL 4, at the end of the year, and at BRL 4.20 at the end of 2016.
*Translated by Sérgio Kakitani
