Brasília – Brazilian financial market players revised down their forecasts for inflation and economic growth this year. According to the Focus Bulletin, a publication issued weekly by the Brazilian Central Bank and based on a poll of financial market players, the estimate for this year’s Extended National Consumer Price Index (IPCA) was revised down for the third time in a row, this time from 3.71% to 3.64%.
The estimate for 2018 dropped from 4.37% to 4.33%, in the second straight revision. The forecasts remain below the midpoint of the inflation target range, which is 4.5%. In June, the poll’s respondents expect 0.07% deflation; last week, prices were expected to remain flat.
The estimate for the Gross Domestic Product (GDP) changed down from 0.41% to 0.4%, in the second straight revision. The GDP forecast for next year changed from 2.3% to 2.2%, in the fourth consecutive revision.
*Translated by Gabriel Pomerancblum
