News

Inflation to close the year at 7.12%

06 de junho de 2016

The forecast based on a poll of financial institutions issued by the Brazilian Central Bank this Monday (6) is higher than last week’s.

Brasília – The weekly inflation forecast by Brazilian financial institutions for this year, gauged by the extended national consumer price index (Índice Nacional de Preços ao Consumidor Amplo - IPCA) has changed from 7.06% to 7.12%. The projection for 2017 remained unchanged at 5.5%. The IPCA is computed by the Brazilian Central Bank and issued in the Focus Bulletin.

The benchmark interest rate (known as the Selic rate) is seen at 12.88% per annum at the end of 2016 and 11.25% at the end of 2017. The Selic is currently at 14.25%.

The Gross Domestic Product (GDP) shrinkage forecast has changed slightly from 3.81% to 3.71%. The shrinkage estimate for 2017 widened from 0.55% to 0.85%.

*Translated by Gabriel Pomerancblum