75% expected rise in consumer prices in Brazil

Brazilian analysts predicted that the inflation rate in Brazil at the end of 2023 will rise by 4.75 percent as policymakers confirmed their plans to start a gradual monetary easing cycle amid the deteriorating global outlook.A weekly survey of economists at the Central Bank of Brazil, the results of which were published yesterday, showed that consumer prices are expected to rise next December, down from previous estimates at 4.86 percent, according to the “Bloomberg” News Agency.The survey also showed that the rate of increase in consumer prices is expected to decline at 3.88 percent in 2024.The Monetary Authority targets that the inflation rate will reach 3.25 percent in 2023, and 3 percent in 2024.Policymakers led by Roberto Campos Neto cut borrowing costs to 12.75 percent last September as growth in service prices improved.The economy proved resilient in the face of tight monetary policy after recording two better-than-expected quarters, prompting analysts and the central bank to raise growth forecasts. The annual inflation rate finally accelerated less than expected in September, reaching 5.19 percent.