MNI BRIEF:Inflation Expectations Worsen Despite Price Drop-BCB
Brazil's Central Bank Quarterly Report for the second quarter of 2024 was released Thursday.
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)