Inflation forecast eases for 7th straight week

A poll of Brazilian financial institutions showed that the National Extended Consumer Price Index is expected to end the year at 3.71%.

Agência Brasil

Brasília – The forecast from Brazilian banks regarding inflation this year has eased, as per a weekly poll from the Brazilian Central Bank. The National Extended Consumer Price Index (IPCA) is now seen ending 2018 at 3.71%, down from 3.89% as of last week. The Central Bank released its Focus Bulleting containing the poll’s results this Monday (10). The 2019 IPCA forecast moved down for the fifth week in a row, from 4.11% to 4.07%. The projection for 2020 has been 4% for 75 weeks now, and the one for 2021 changed from 3.78% to 3.75%.

The easing of the inflation forecast came after the Brazilian Institute of Geography and Statistics (IBGE) reported that the IPCA saw 0.21% deflation in November.

Expected Gross Domestic Product (GDP) growth slid for the second week, this time from 1.32% to 1.30%. The 2019 forecast remains at 2.53%, with GDP`seen climbing 2.50% in 2020 and in 2021.

Translated by Gabriel Pomerancblum

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