Inflation & Prices
Brazil Analysts See Higher Rates, Prices Rising Faster With Lula
- Lula took office pledging to push for large spending plans
- Most analysts see the Selic rate ending 2023 at 12.25%
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Brazil’s central bank will be even slower to cut its benchmark interest rate from the current 13.75% level, according to a survey of economists who see inflation expectations deteriorating further through the first few years of Luiz Inacio Lula da Silva’s administration.
The benchmark Selic will reach 12.25% by December, up from a prior estimate of 12%, according to a weekly central bank survey published on Monday. The first poll released after Lula’s inauguration brought a fresh round of upward revisions to inflation estimates: consumer prices are now forecast to jump 5.31% this year, 3.65% in 2024 and 3.25% in 2025 — all of them above goal.