CBank expects sub-target inflation at 4% in 2017

The Central Bank of Brazil expects inflation—as gauged by the Broad National Consumer Price Index (IPCA)—to stand at 4% this year. This information was released by the bank in Brasília Thursday (March 30).

The estimate is based on financial market projections for interest and foreign exchange rates. If the forecast is realized, the inflation rate will be within the 4.5% target (with the range set to oscillate plus or minus 1.5%).

For 2018, the end-year inflation forecast is 4.5%—exactly at the center of the target. The cumulative rate for the 12-month period that will end in March 2019 is expected to stand at 4.6%.

Translated by Mayra Borges