Brazilian inflation expectations for 2017 drop to 4.12%, according to the Central Bank’s Focus Report

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.

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