Brazil’s Central Bank Worried About Higher than Expected Inflation

In the minutes published today of the Central Bank Monetary Policy Committee’s (COPOM) most recent meeting, held on January 17-18, the committee estimates that inflation in January will exceed expectations.

The document underscores, however, that the upward move is the result of "temporary influences," mainly the increase in fuel prices and bus fare hikes in the capital cities of Belo Horizonte (Minas Gerais), Brasí­lia (Federal District), and Fortaleza (Ceará).

"The rise in inflation at the start of 2006, as detected by various indicators, has been occurring with greater intensity than was originally anticipated," the text says.

"To a great extent, the recent hike is due to temporary influences, predominately seasonal in nature, which should have an impact on inflation in the first two months of the year."

The COPOM points out that this effect should decline over time, without posing a long-term inflationary risk.

In the minutes, the committee reaffirms that it will continue acting to ensure that the gains "obtained up to now in the fight against inflation will be permanent."

To accomplish this, it will follow closely "the evolution of inflation and the various measures of its nucleus, promptly adjusting the posture of monetary policy to the circumstances."

At its most recent meeting, the COPOM reduced the annualized benchmark interest rate (Selic) from 18% to 17.25%, without bias, that is, without signaling an adjustment in either direction prior to its next meeting, scheduled for March 7.

Agência Brasil

Tags:

You May Also Like

Land Conflicts: 772 Murders and No One in Jail in Parí¡, Brazil

In February, a Catholic missionary born in the United States, Dorothy Stang, who was ...

Brazilian Federal Police Tap and Threaten the Press

Reporters Without Borders today, November 10, condemned the action of the federal police in ...

Brazil’s Lula Comes in Defense of Chí¡vez in Spat with King Juan Carlos

Brazilian President, Luiz Inácio Lula da Silva, minimized this Wednesday, November 14, the  significance ...

Panama National Airline Orders from Brazilian Embraer

Panamanian Copa Airlines has converted two Brazilian Embraer 190 options into firm orders, adding ...

Industrial Electricity Comsumption Jumps 5.9% in Brazil

Brazil’s Energy Research Corporation (Empresa de Pesquisa Energética) (EPE) reports that total electricity consumption ...

Brazilian Blind Get Program that Convert Into Sound Every Computer Text

Brazilian who are blind or suffer from other visual deficiencies will gain a new ...

Brazil’s Vehicle Production Falls 3.7% While Coffee Exports Rise 17%

Compared with December of last year, Brazil’s vehicle production dropped by 3.7% in January. ...

Brazil Has Latin America’s Two Largest Companies: Petrobras and Vale

State-controlled oil multinational Petrobras and mining company Companhia Vale do Rio Doce (CVRD), both ...

Indians Don’t Feel at Home in Brazil

Amnesty International has documented and campaigned against human rights violations committed against indigenous peoples ...

Brazilians Protest US Nun’s Murder

Brazilian representatives of non-governmental organizations, the landless, performers, lawmakers, and intellectuals met in the ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`