Inflation estimate from banks stays flat

A Brazilian Central Bank poll of financial institutions shows that prices are expected to have gone up by 3.71% by the end of the year. The result is the same as last week’s.

Agência Brasil

Brasília – After easing for seven straight weeks, the inflation forecast for this year from financial institutions remained flat. The Extended National Consumer Price Index (IPC-A) is seen ending the year at 3.71%. The number is from the Focus Bulletin released each Monday on the Central Bank website, with estimates from banks regarding key economic indicators.

The 2019 forecast also remained unchanged at 4.07%. Inflation is expected to end 2020 at 4% and 2021 at 3.75%.

Selic, the benchmark interest rate, is seen climbing throughout 2019 to end the year at 7.5% per annum.

Gross Domestic Product (GDP) is seen ending the year at 1.30%. The 2019 forecast moved up from 2.53% to 2.55%. GDP is expected to end 2020 and 2021 up 2.50%.

The Central Bank poll’s respondents expect the US dollar to be selling for BRL 3.83 by the end of 2018, up from a prior BRL 3.78 forecast. The 2019 year-end forecast remains at BRL 3.80.

Translated by Gabriel Pomerancblum

Fernando Frazão/Agência Brasil

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