For the first time in 36 weeks, top-rated investment firms surveyed by the Central Bank lowered their expectations for year-end inflation — from 10.18 to 10.05 percent. For next year, predictions remained unchanged at 5.02 percent.
Consumer prices measured by the benchmark IPCA index rose 0.95 percent in November. Brazil’s 12-month inflation now stands at 10.74 percent (the highest since November 2003) and has been in the double digits for the past three months.
Inflation is not an exclusively Brazilian problem, of course. The U.S.’s core Consumer Price Index has risen 6.8 percent over the last 12 months, marking its biggest jump in 39 years. But analysts add that even amid a scenario of global rising prices, Brazil has been a negative outlier — due to the government’s lack of commitment to austerity measures and ongoing political crises.