Projection for inflation this year increases for the 25th week, shows Focus

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The market continued to increase expectations for the inflation this year for the 25th week in a row, while continuing to see lower growth in economic activity in 2022, the Focus newsletter released by central bank in this Monday.

The survey showed that the projection now for the high of the IPCA in 2021 is 8.45%, from 8.35% in the previous week. For 2022, the account also rose and was 4.12%, from 4.10% before.

The center of the official target for inflation in 2021 is 3.75% and for 2022 it is 3.50%, always with a tolerance margin of 1.5 percentage points more or less.

Last week, the BC increased the base interest rate by 1 percentage point, to the level of 6.25% per year, and indicated that it will move into “contraction territory” by continuing its aggressive monetary tightening cycle to tame a inflation that has been more persistent and widespread.

The market is now awaiting the release on Tuesday of the minutes of this meeting in search of more details on the decision. Also on Thursday, the BC also releases its Inflation Report.

For the Gross Domestic Product (GDP), the growth estimate this year was maintained at 5.04%, but for next year it fell 0.06 percentage point, to 1.57%

The weekly survey of a hundred economists also showed that there was no change in the outlook for the base interest rate, with the scenario for the Selic remaining at 8.25% this year and 8.50% next year.

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