Brazil government estimates mid-year inflation peak of nearly 7%

For inflation to drop and close near the target, Guedes relies on the performance of the Monetary Policy Committee (COPOM), that decides on the basic interest rate.

RIO DE JANEIRO, BRAZIL - Economy Minister Paulo Guedes' calculations indicate that in June the Broad Consumer Price Index (IPCA) will reach this year's peak. According to the Minister, official inflation will reach 6.7% in the period, and could be as high as 7%.

The Economy Ministry head believes that the Central Bank, under Roberto Campos Neto, will take action looking at the whole inflationary scenario in order to prevent uncontrolled inflation. The government expects the rate to end the year below its peak, at 4.4%, but above the target center of 3.75%. This Central Bank intervention . . .

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