Market reduces inflation prediction

Financial institutions have reduced their estimate for the National Extended Consumer Price Index (IPCA) from last week’s 3.58% to 3.56%.

From the Newsroom
newsroom@anba.com.br

Brasília – Financial institutions polled by the Central Bank (BC) have reduced their estimate for 2020 inflation. The forecast regarding the National Extended Consumer Price Index (IPCA) moved from last week’s 3.58% to 3.56% as per this Monday’s (20) Focus Readout.

The 2021 inflation estimate remained unchanged at 3.75%. Forecasts also remained unchanged at 3.50% for 2022 and 2023.

The 2020 forecast is lower than the inflation target, which must be pursued by the BC. The target is 4% in 2020, with a tolerance margin of 1.5 percentage points on either side.

The Gross Domestic Product (GDP) growth prediction moved from 2.30% to 2.31% in 2020. The financial institutions’ estimate for 2021, 2022 and 2023 remained unchanged at 2.50%.

Translated by Guilherme Miranda

Agência Brasil

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