Brazilian inflation projections for this year continue to fall, according to the Central Bank’s focus report. The median of estimates for the Broad Consumer Price Index (IPCA) went from 4.15% last week to 4.12% in this instalment of the report. Only a month ago, the projection was a print of 4.36%. Among the top-five analysts’ estimates, the median fell further from 4.20% to 4.08%. In the 12-month measure, the forecast for the IPCA was 4.55%
As for the Selic rate, forecast remains the same – with market predicting a rate of 9% by the end of this year and 8.50% by the end of 2018.
Finally, in terms of activity, the Focus Report has a slight change in the estimate of this year’s GDP growth from 0.48% to 0.47%. The forecast for 2018 continues to be the same at 2.50%.
The full report can be read here.