The Brazilian Central Bank on Thursday issued its Quarterly Inflation Report, forecasting higher inflation than previously projected, and lower growth. The bank is now forecasting 2018 inflation of 4.2%, up from its previous projection of 3.8%. The bank pulled down its forecast for GDP growth from 2.6% to just 1.6%. On the inflation front, the bank cited effects on prices of the truckers’ strike in May. Inflation will also be spurred by the weakness of the Brazilian Real against the U.S. dollar, which will push up prices of imported goods. On the growth side, the bank said investor and consumer confidence have declined in recent weeks, due to events such as the truckers’ strike as well as continued political uncertainties.
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