FOCUS Survey: Brazil’s 2021 inflation now forecast at 4.0%, 2022 outlook also rises

A persistently weak exchange rate, strong global commodity prices and growing concerns over the government’s fiscal position are all pushing inflation expectations higher.

RIO DE JANEIRO, BRAZIL - Brazil’s expected inflation for 2021 rose for a ninth straight week to a new high of 4.0% in a Central Bank survey of economists published on Monday, March 8th, while the interest rate expected at the end of 2022 rose by 50 basis points.

The average forecast for IPCA consumer price inflation at the end of this year rose from 3.9% a week ago, according to the latest weekly “FOCUS” survey of over 100 economists, rising further above the central bank’s official goal of 3.75%.

The central bank’s inflation target . . .

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