Inflation & Prices
Brazil Inflation Estimates Near 6% Despite Agressive Rate Hikes
- Twelve-month inflation revised up for 18th consecutive week
- Economists’ annual forecasts remain above target through 2028
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Brazil analysts revised up 12-month inflation expectations to further above the central bank’s goal, even after policymakers increased the benchmark interest rate by a full percentage point last month and pledged another hike of the same magnitude in March.
Consumer prices are forecast to rise 5.87% in the 12 months, compared with 5.74% in the previous report, according to a weekly survey of economists published on Monday. It was the 18th straight week of upward revisions for the 12-month estimate, which became more widely observed since the central bank adopted a continuous inflation target of 3%. Analysts also lifted their estimates for 2025 inflation to 5.58% and next year’s to 4.30%.