Inflation projections in Brazil fall yet again
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Loading... - Freja Jensen
- 20 Oct 2022
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Brazilian economic authorities have cut down projections regarding 2022's annual inflation from 5.71% to 5.62%, it was reported Monday. It was the 16th consecutive reduction of the National Wide Consumer Price Index (IPCA) estimate.
The new figures were published in Monday's issue of the weekly Focus Bulletin released by Brazil's Central Bank (BCB). For 2023, the inflation projection was 4.97%. For 2024 and 2025, the forecasts are for inflation of 3.43% and 3%, respectively.
The 2022 projection is still above the inflation target set by the Central Bank's National Monetary Council of 3.5%, plus/minus 1.5 percentage points.
September showed deflation of 0.29%, the third month in a row in which the index fell. With this result, the IPCA has accumulated a high of 4.09% for the year and 7.17% interannually, according to the Brazilian Institute of Geography and Statistics (IBGE).
To calculate the inflation target, the Central Bank uses the basic interest rate, the Selic, set at 13.75% per year by the Monetary Policy Committee (Copom), as its main instrument. The rate is at its highest level since January 2017. Read More...
