BofA raises Brazil’s consumer price projection for 2021 from 7.75% to 8%
RIO DE JANEIRO, BRAZIL – Bank of America (BofA) raised the National Wide Consumer Price Index (IPCA) projection for 2021, from 7.75% to 8%, after the release of the IPCA in August, by IBGE, on Thursday (9). The indicator rose 0.87% against July.
Although it slowed down in relation to the previous month, when it advanced 0.96% in the margin, the August index was above the bank’s expectations of 0.65%.
For September, says a report released by BofA, the bank expects inflation to decelerate to 0.75% every month, driven by easing fuel and food prices. However, energy and airfare prices are expected to increase significantly.
The bank expects inflation to peak at a 12-month high of 9.8% in September. The report says that the upward pressures from food and fuel should dissipate by the end of the year.
Moreover, indicates the bank, the ongoing cycle of interest rate hikes by the Central Bank should prevent inflationary pressures from persisting in the medium term.
The upside risks listed in the report are commodity prices, fiscal risks, and additional increases in electricity tariffs due to the low reservoirs levels.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.57%
170,033.63
-0.57%
69,182.39
-0.76%
10,600.37
-0.73%
2,848,945
—
2,498.96
-0.27%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 170,033.63 | -0.57% | +19.56% | 171,006.10 | 178,526 | 175,157 | — |
| USD/BRL | 5.34 | -1.32% | -0.84% | 5.42 | 5.42 | 5.30 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 53.31 | -1.06% | +77.70% | 53.88 | 53.70 | 52.83 | 43,239,500 |
| VALE3 | 62.88 | -2.33% | +1.98% | 64.38 | 64.43 | 62.80 | 24,652,300 |
| ITUB4 | 41.42 | -0.67% | +11.30% | 41.70 | 42.60 | 41.15 | 28,160,700 |
| BBDC4 | 15.69 | -1.63% | -13.88% | 15.95 | 16.30 | 15.67 | 65,766,400 |
| BBAS3 | 17.59 | +0.69% | -15.59% | 17.47 | 18.31 | 17.51 | 67,844,600 |
| B3SA3 | 15.27 | +1.33% | +21.71% | 15.07 | 15.78 | 15.20 | 75,282,000 |
| ABEV3 | 15.40 | +0.20% | +26.75% | 15.37 | 15.68 | 15.31 | 27,307,400 |
| WEGE3 | 45.78 | +2.81% | +10.06% | 44.53 | 47.08 | 45.06 | 9,823,200 |
| PRIO3 | 69.21 | -2.71% | +87.14% | 71.14 | 70.98 | 69.15 | 6,663,200 |
| SUZB3 | 47.14 | -0.55% | -3.79% | 47.40 | 47.84 | 46.10 | 7,151,800 |
| RENT3 | 31.14 | -1.67% | -20.73% | 31.67 | 32.68 | 31.02 | 19,092,400 |
| AZZA3 | 16.72 | +1.15% | -42.24% | 16.53 | 17.42 | 16.72 | 4,875,400 |
| CSNA3 | 4.76 | -4.99% | -47.09% | 5.01 | 5.14 | 4.76 | 14,327,900 |
| GGBR4 | 24.87 | -2.28% | +36.28% | 25.45 | 26.20 | 24.79 | 7,507,900 |
| ENEV3 | 26.79 | +0.45% | +49.78% | 26.67 | 27.35 | 26.30 | 12,263,000 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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