Brazilian inflation has peaked and will now enter a steady downward curve, Central Bank President Alexandre Tombini said Thursday. “February marked the beginning of what will prove to be a steady downward trend for the 12-month inflation rate,” Tombini said in a speech to investors in São Paulo. According to Tombini, the 12-month inflation rate peaked at 10.7 percent in January, a month marked by annual adjustments in many contracts and public utility rates. The 12-month inflation rate declined to 10.4 percent in February. Tombini predicted a steady decline to 4.5 percent by the second half of 2017. He said slack demand, a stable currency and steady utilities rates this year should help nudge the trend toward lower inflation.
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