Brazilian inflation in 2016 was 6.29 percent, down from 10.67 percent the previous year and within the government’s target range of 2.5 percent to 6.5 percent, the Brazilian Census Bureau (IBGE) said Wednesday. The figure was within analyst expectations. Inflation has been on a downward curve for several months, causing economists to predict 2017 inflation at or near the government target of 4.5 percent. December inflation was relatively tame at 0.3 percent, with price increases led by fuel and services. Food price increases were near zero and housing costs declined. Given hopes for tame inflation in 2017, the Central Bank is expected to continue its recent policy of monetary loosening. The bank will review interest rates later Wednesday.
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