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Inflation projection for Brazil slightly increased

Staff writer ▼ | May 24, 2016
The annual inflation forecast from Brazilian financial institutions has changed up from 7% to 7.04%.
Rio street
LatAm   GDP shrinkage forecast went to 3.83%
The projection for 2017 has been kept at 5.5%. The numbers are from the Focus Bulletin, a weekly poll conducted by the Brazilian Central Bank.

The estimates are higher than Central Bank’s inflation target range, whose midpoint is 4.5%, with an upper threshold of 6.5% for this year and 6% for 2017.

Benchmark interest rate Selic is seen at 13% per annum by the end of 2016, up from 12.75% as per the prior forecast. For the end of 2017, the forecast changed from 11.50% to 11.38% per annum. The rate is currently at 14.25%.

The Gross Domestic Product (GDP) shrinkage forecast went from 3.88% to 3.83% this year and was kept at 0.5% for 2017.