Brasília – The inflation projection of Brazilian financial institutions increased for the 12th consecutive week, from 10.38% to 10.44%. The 2016 estimate for the Extended Consumer Price Index (IPCA) also climbed from 6.64% to 6.70%. The projections are from the Brazilian Central Bank’s Focus Bulletin, a weekly poll of financial institutions released this Monday (7).
The inflation comes coupled with economic shrinkage both this year and in the next. The expectation of decline of the Gross Domestic Product (GDP) has gone from 3.19% to 3.50% for this year and from 2.04% to 2.31% for 2016.
The US dollar is expected to be selling for BRL 3.95 by the end of this year and for BRL 4.20 at the end of 2016.
*Translated by Gabriel Pomerancblum