RIO DE JANEIRO, BRAZIL - With no slack in wholesale price rises and with negative news on climate and the reorganization of administered rates, concern about inflation in 2021 is growing in the financial market, contrasting with the Central Bank (BC) argument that the shock seems temporary.
This week, the Focus Report, which includes financial market analysts' projections, showed a new increase in the estimate for next year's Broad Consumer Price Index (CPI) from 3.22% to 3.40%, moving increasingly closer to the target center pursued by the Central Bank (3.75%). Moreover, institutions which see inflation exceeding the . . .