Altamiro Carvalho, the federation’s economic adviser, said this week that spending on interest exceeds total yearly costs in education, services, and clothing.
Copom also announced it should pull up the Selic by 1.5 percentage points at its next meeting, in December. The value is at its highest since October 2017, when it reached 8.25 percent a year.
The estimate made by financial institutions for the National Broad Consumer Price Index (IPCA)—Brazil’s official inflation—went up from 8.69 to 8.96 percent. This is the 29th consecutive time the projection is revised upwards.
In a statement, Copom said that it also plans to expand the rate by one percentage point at the next meeting (September 21–22).
For 2022, the estimated inflation is 3.51 percent. For both 2023 and 2024, predictions stand at 3.25 percent. The projection for 2021 is above the center of the Central Bank’s inflation target.
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