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Brazil Analysts Forecast 7% Inflation in 2016 as Real Drops

  • Central bank to raise key rate this week, economists predict
  • Real seen weakening for two straight years to 4.3/dlr in 2017
Updated on

Brazil’s consumer prices will rise 7 percent this year as the currency continues to depreciate, increasing pressure on the central bank to resume monetary tightening this week.

Economists surveyed by the central bank raised their 2016 inflation forecast for the third straight week and expect consumer price increases to exceed the 6.5 percent upper limit of the target range for a second straight year.