Focus Bulletin

Analysts predict low inflation this year and next. Expectations for 2018 GDP increased in the last week

For the eighth consecutive week, the financial market improved projections for the cost of living in Brazil. Experts now expect inflation to end the year at 4.36%. A month ago, this projection was higher, it was at 4.70%.

The information is part of the Focus Bulletin, a weekly publication that brings together the projections of about 100 analysts. The Central Bank is responsible for collecting and disseminating data.

For 2018, analysts' forecasts are the same 31 weeks ago. They believe that the Broad Consumer Price Index (IPCA) will remain at 4.5%, exactly the goal pursued by the Central Bank.

The financial market is also more optimistic about the scenario for interest rates in the country. The economists' expectation is that the Selic will fall more than initially expected. Until last week, the projection was that the rate would be 9.50% per year by the end of 2017; Now that figure has fallen to 9.25%.

2018 GDP

In this latest edition of Focus, the financial market has seen a better scenario for next year's Gross Domestic Product (GDP). The economy is expected to grow 2.37%. A week earlier, that number was lower, it was at 2.30%.

Source: Portal Brasil, with information from the Central Bank