Brazil Analysts Boost 2013 Inflation Forecast for Fifth Week

Analysts covering Brazil raised their forecast for 2013 inflation for the fifth straight week, as price pressures continue strong even while the economy struggles to accelerate.

Brazil’s inflation in 2013 will accelerate to 5.68 percent, according to the median estimate in a central bank survey of about 100 analysts published today. The economists had forecast 5.67 percent the previous week.

President Dilma Rousseff’s government has expanded measures aimed at spurring activity in the world’s second-largest emerging market after two years of declining growth. Increased consumption driven by tax cuts and near record-low unemployment has been overshadowed by falling investment and weak business confidence.

Economic growth slowed to 1 percent last year, the central bank estimates, following expansion of 2.7 percent in 2011 and 7.5 percent in 2010. Even so, annual consumer price inflation quickened to 6.02 percent through mid-January, the national statistics agency said Jan. 23, and has exceeded the central bank’s 4.5 percent target for the last 29 months.

Gross domestic product will expand 3.1 percent this year, the survey showed, unchanged from the previous week. Economists in the survey held their prediction for 2014 inflation at 5.50 percent and boosted their growth estimate to 3.70 percent from 3.65 percent.

Industrial output was unchanged in December from a month earlier and contracted 2.7 percent last year, the national statistics agency said on Feb.1.

Before it's here, it's on the Bloomberg Terminal.