Brasília –The Brazilian inflation rate projection by financial analysts has gone up for the ninth consecutive week. The Extended Consumer Price Index (IPCA) estimate climbed from 8.46% to 8.79% for this year. For 2016, the estimate remains at 5.50%. The numbers are from the Focus Bulletin, issued weekly by the Brazilian Central Bank based on the projections of financial institutions.
In a bid to rein in hiking prices, the Central Bank’s Monetary Policy Committee (Copom) is notching up the benchmark interest rate (Selic rate) repeatedly. On June 3rd, Copom raised the Selic rate for the sixth time, to 13.75% per annum, back to January 2009 levels. Financial institutions believe the rate will be 14% per annum by the end of 2015.
The poll’s respondents expected Gross Domestic Product (GDP) shrinkage for this year has gone from 1.30% to 1.35%, the fourth consecutive turn for the worse for this estimate. The GDP growth projection for next year went from 1% to 0.9%. Industrial production is expected to drop 3.2% and increase by 1.6% in 2016.
*Translated by Gabriel Pomerancblum
