Central Bank’s inflation forecast up

28 de junho de 2016

Brasília – The Brazilian Central Bank’s inflation forecast for this year has worsened. The bank believes the extended national consumer price index Índice Nacional de Preços ao Consumidor Amplo (IPCA) should be 6.9%, up from 6.6% as of last March. The estimate is part of the Quarterly Inflation Report issued this Tuesday (28) in Brasília.

According to the Central Bank, in 2017, inflation will lose steam and reach 4.7%, down from a prior forecast of 4.9%.

The Brazilian monetary authority has also revised down its economy shrinkage forecast for this year. It believes the Gross Domestic Product (GDP) should contract by 3.3%, while the previous estimate had been 3.5%. In 2015, Brazil’s GDP shrank by 3.8%.

*Translated by Gabriel Pomerancblum