Brasília – The governor of the Brazilian Central Bank (BC), Alexandre Tombini, stressed this Tuesday (15th), during a public hearing in the Senate, that he expects to hit the center of the target inflation rate in 2017. Differently from his speech made on December 10th, in which he guaranteed that the BC would steer the inflation rate as close as possible to the target center (4.5%) in 2016, Tombini said that the rise in prices of next year will be within the limit (6.5%).
“The Central Bank will take the necessary measures to guarantee the fulfilling of the goals of the inflation target system in 2016, circumscribing the inflation to the tolerance limits established by the CMN [National Monetary Council], and steering the inflation rate towards the target of 4.5% in 2017”, he said in a public hearing at the Senate’s Economic Affairs Committee (CAE).
The inflation estimation made by financial institutions, measured by the Extended National Consumer Price Index (IPCA), for this year stands at 10.61%. For 2016, the estimation for the IPCA stands at 6.80%, therefore, above the target ceiling.
*Translated by Sérgio Kakitani
