RIO DE JANEIRO, BRAZIL - The bank also raised its projection for the IPCA (Extended National Consumer Price Index) this year from 8.7% to 9.1%, and in 2022 from 5.2% to 5.5%.
"Higher inflation this year is the result of a more depreciated exchange rate, higher international fuel prices and larger increases in energy prices. For next year, our revision was due to the greater impact of inertia and a more depreciated exchange rate," economists say.
In turn, the worsening fundamentals are compatible with higher neutral interest rates and higher inflation projections, which should demand a more . . .
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