Free Trial

MNI BRIEF:Inflation Expectations Worsen Despite Price Drop-BCB

Brazil's consumer price inflation has decreased, but economic analysts' inflation expectations have deteriorated, which is a point of concern, the Central Bank Quarterly Report for the second quarter of 2024 showed Thursday.

"Since the previous report, consumer price inflation has decreased, but economic analysts' inflation expectations have deteriorated," the document said. "The further unanchoring of inflation expectations for 2025 and 2026, which were already above the inflation target for the period, is a point of concern," added.

Reflecting the increase in Copom's inflation forecast, the report highlighted that the probability of inflation exceeding the upper limit of the tolerance range has risen for 2024 and 2025. "The estimated probability, constructed from the probability intervals, increased from 19% to 28% for 2024 and from 17% to 21% for 2025," stressed. (See MNI INTERVIEW: Brazil's Copom On Hold Until December - Kfoury)

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.