Inflation forecast revised up

20 de junho de 2016

A weekly poll of economists by the Brazilian Central Bank, the Focus Bulletin reveals that prices are expected to have hiked by 7.25% at the end of this year, while GDP is now seen shrinking less than last week.

São Paulo – Financial institutions polled weekly by the Brazilian Central Bank have revised up their inflation forecast for this year. The Focus Bulletin released this Monday (20) shows that inflation is seen at 7.25% at the end of 2016, up from 7.19% in last week’s forecast. It was the fifth upward revision in a row.

Gross Domestic Product (GDP) shrinkage expectation for this year is now 3.44%, down from 3.6% last week – also the fifth week-on-week improvement. In 2017, 1% growth is expected. Respondents of the Central Bank’s poll believe the US dollar will be selling for BRL 3.60 by the end of 2016, down from BRL 3.65 as per last week’s forecast.

*Translated by Gabriel Pomerancblum