Financial Market Forecasts 4.5% Inflation for Brazil in 2006

    Brazil’s financial market gives every indication that the Brazilian Broad Consumer Price Index (IPCA) will amount to 4.5% in 2006, in line with the government’s official target, and that it was 0.35% in December, which means a cumulative IPCA of 5.68% in 2005.

    This information is part of the Focus bulletin issued today by Brazil’s Central Bank (BC).

    The BC’s survey, which is based on interviews conducted every Friday with a hundred market analysts and representatives of financial institutions to detect trends in the major economic indicators, proved accurate in its forecast for inflation in 2005, since the interviews conducted on December 30, 2004, predicted a year-end 2005 IPCA of 5.70%, above the official target of 5.1%, as is now being confirmed.

    The rest of the market’s projections for inflation in 2005 were not as accurate. Mainly because the prices that are administered by contract or monitored (fuels, electricity, telephone services, water, sanitation, education, health, and others) rose by more than was expected: 8.80%, rather than 7.09%. The forecast for 2006 is for an increase of 4.50%.

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian imports

    Brazil Calls “Unjustifiable” US Warning Over Brazilian Protectionist Measures

    Ron Kirk, US Trade Representative, urged Brazil in a letter sent on Wednesday to ...

    With Bush Part 2, Nothing Changes Re: Brazil

    The United States Ambassador to Brazil, John Danilovich, said today that with the reelection ...

    Imports grow 26%

    Brazil Surplus Reaches US$ 19.6 Billion with Exports Growing 21%

    The Brazilian balance of trade recorded a US$ 998 million surplus in the fourth ...

    New cardinal Odilo Pedro Scherer

    Brazil Gets New Cardinal. He Will Be Choosing Next Pope

    São Paulo's (Brazil) Archbishop Odilo Pedro Scherer was named cardinal on Wednesday, October 17, ...

    Brazil’s Micro Credit Program a Hit. Default: 1.2%.

    Within the scope of a new credit program for productive activities, in Brazil, established ...

    Brazil Hosts International Encounter on the Millennium Goals

    Ministers, congressmen and representatives of civil society from 16 Latin American and Caribbean countries ...

    UN Security Council

    Brazil Approved to UN Security Council Seat by a Landslide

    Brazil, Nigeria, Lebanon, Gabon and Bosnia were elected Thursday to non-permanent seats on the ...

    Best-seller Books, Plays and Movies

    President Fernando Henrique Cardoso unabashedly stands by everything he ever wrote and insists that, ...

    Immigration march in the US

    It’s Time Brazil’s Lula Chimes In on the US Immigration Reform Debate

    The hopes of undocumented Brazilians in the United States got a boost when last ...

    Electricity

    Brazil Offers Paraguay a Loan But Not a Better Deal on Electricity

    Paraguayan president Fernando Lugo, who is visiting Brazil, and his counterpart host Brazilian Luiz ...