Jan. 23 (Bloomberg) -- Brazilian economists raised their 2006 inflation estimate for a second week as costs for food and ethanol climb, according to a central bank survey.

The median estimate for inflation as measured by the government's benchmark IPCA index rose to 4.61 percent from 4.58 percent a week earlier, according to the weekly survey. The Getulio Vargas Foundation said today that a separate index showed inflation in the 30 days through Jan. 22 quickened to 0.74 percent from 0.46 percent through Dec. 31.

Dry weather in the south of Brazil and rain in the southeast are damaging crops, boosting the price of food. Ethanol producers also raised prices this month, said Vladimir Caramaschi, chief economist at Fator Corretora.

``Economists are just reacting to higher-than-expected inflation from food and ethanol this month,'' Caramaschi said. He said he doesn't expect the price rises to prevent the central bank from lowering interest rates further because ``the pressure will fade.''

Policy makers last week trimmed the benchmark interest rate 0.75 percentage point, the most in more than two years, to 17.25 percent. They may lower the rate, already down from a two-year high of 19.75 percent in September, to 15 percent by the end of the year, Caramaschi said.

Inflation measured by the government's benchmark IPCA consumer price index, which will probably quicken to 0.55 percent this month from 0.36 percent in December, will slow to 0.45 percent in February and 0.3 percent in March, Caramaschi said.

The weekly central bank survey of about 100 economists was taken Jan. 20 and published today.

To contact the reporter on this story: Carlos Caminada in Brasilia at at ccaminada1@bloomberg.net

Last Updated: January 23, 2006 11:08 EST