Economists Cut Inflation View For 2012 To 5.24%

Economists now expect the country's inflation to average 5.24% this year, down from a forecast of 5.29% a week earlier, according to the survey. Despite the reduction, the forecast is above the central bank's inflation target of 4.5% for the year. 

   
Brazil's inflation rate reached 6.50% last year, the highest since hitting 7.6% in 2004. 

   
On the other hand, for 2013, respondents increased their inflation forecast to 5.02% from 5.0%. 

   
The weekly survey tracks the opinions of 100 analysts and economists and reports the average of their expectations. 

   
The forecast for the Central Bank's benchmark Selic interest rate at the end of 2012 and 2013 remained at 9.50% and 10.50%, respectively. 

   
In the meantime, respondents maintained their estimate for Brazil's 2012 gross domestic product growth at 3.3%. For 2013, they also kept their view of an expansion of 4.1%. 

   
The average expectation for Brazil's debt-to-GDP ratio at the end of this year was reduced to 36.70% from 36.90%. 

   
The forecast for this year's trade surplus increased to $19.5 billion from $19.1 billion. Analysts expect Brazil to post a current-account deficit of $67.83 billion at the end of this year. 

    Brazil's currency, the Real, is expected to end this year at R$1.75 to the dollar, according to the survey. Economists Cut Inflation View For 2012 To 5.24%

 

    Financial market analysts and economists have reduced their forecasts for Brazil's inflation this year, according to a survey by the Central Bank of Brazil published Wednesday. 

    Economists now expect the country's inflation to average 5.24% this year, down from a forecast of 5.29% a week earlier, according to the survey. Despite the reduction, the forecast is above the central bank's inflation target of 4.5% for the year. 

    Brazil's inflation rate reached 6.50% last year, the highest since hitting 7.6% in 2004. 

    On the other hand, for 2013, respondents increased their inflation forecast to 5.02% from 5.0%. 

    The weekly survey tracks the opinions of 100 analysts and economists and reports the average of their expectations. 

    The forecast for the Central Bank's benchmark Selic interest rate at the end of 2012 and 2013 remained at 9.50% and 10.50%, respectively. 

    In the meantime, respondents maintained their estimate for Brazil's 2012 gross domestic product growth at 3.3%. For 2013, they also kept their view of an expansion of 4.1%. 

    The average expectation for Brazil's debt-to-GDP ratio at the end of this year was reduced to 36.70% from 36.90%. 

    The forecast for this year's trade surplus increased to $19.5 billion from $19.1 billion. Analysts expect Brazil to post a current-account deficit of $67.83 billion at the end of this year. 

    Brazil's currency, the Real, is expected to end this year at R$1.75 to the dollar, according to the survey.