Brazil’s Financial Market Expecting Inflation Below 5% in 2006

    The first "Focus Bulletin" of the year, released today by Brazil’s Central Bank (BC), indicates that Brazilian financial analysts expect a Broad Consumer Price Index (IPCA) of 5.68%, for 2005.

    The official number will be released next Monday, January 13, by the Brazilian Institute of Geography and Statistics (IBGE).

    According to consultants, last year’s inflation was above the 5.1% goal. For this year, the bulletin foresees that the 4.50% inflation goal will be attained, in spite of the increased forecast (from 4.5% to 4.6%) for adjustments in administered prices (fuel, electricity, phone, education, water, etc.), in comparison to the previous bulletin.

    The projection for the Consumer Price Index, measured by the Institute of Economic Research Foundation (IPC-FIPE), also went up, from 4.5 to 4.55%, in the city of São Paulo.

    According to the economists consulted by the BC, December inflation was 0.35%, but prices tend to slightly rise to 0.40%. They also predict an increase in wholesale prices during 2006.

    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    Your email address will not be published.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

    A sugar factory in Brazil

    Brazil Should Be Smart Enough Not to Put All Its Eggs in the Ethanol Basket

    As one of the country’s well-recognized industries, the future importance of Brazil’s biofuels sector ...

    Brazil’s Trade Surplus Falls in Half to US$ 2.5 Billion

    According to Brazil's Ministry of Development, Industry and Foreign Trade. exports from Brazil reached ...

    Facing Too Many Suits to Kick Out Legislators Brazilian Congress Won’t Even Consider Some

    The president of the Brazilian Congress’s Council of Ethics, Deputy Ricardo Izar (PTB-São Paulo), ...

    Brazil Is Ready for Foreign Private Partners

    The challenges facing development cannot be overcome without public-private partnerships (PPPs). This is the ...

    Brazil Welcomes Bush’s Vows to Put and End to Farm Subsidies

    President Bush and Brazilian President Luiz Inácio Lula da Silva have issued a joint ...

    Brazil Again World’s Top Beef Exporter with Over US$ 3 Billion in Earnings

    Brazil’s beef exports in 2005 should surpass US$ 3 billion, according to the president ...

    In Brazil, Buggies Never Go Out of Style

    The buggies, those little hoodless cars with fiberglass bodies and large back wheels, have ...

    Raposa Serra do Sol Indians

    Brazil’s Supreme Sides with Indians Ousted from their Ancestral Lands

    Brazilian Supreme Court’s (STF) Commission on Jurisprudence denied the request of the National Agriculture ...

    Brazil’s Ambitious Biodiesel Plans

    Brazil’s investment in biodiesel production is expected to reach US$ 515 million in 2008, ...