INDICATORS: inflation expectations fall for the fourth consecutive week

The financial market reduced inflation expectations, as measured by the Consumer Price Index (IPCA). This time, the index is 5.42%, which represents a drop of 4.74%, in comparison with the last release of the indicator. This is the fourth drop in a row of inflation expectations. The data are contained in the Focus Bulletin, released this Monday (12) by the Central Bank.

The IPCA is considered the official index that measures Brazilian inflation. For 2023, the inflation target, defined by the National Monetary Council (CMN), is 3.25%, with a tolerance interval of 1.5 percentage points (pp) upwards or downwards. Therefore, the inflation expectation still remains above the target.

In relation to GDP, there is an increase in the projection for the fourth consecutive week, compared to the previous week, by 1.84%. The increase occurs in view of the release of the Gross Domestic Product result for the first quarter of 2023, up 1.9%.

The dollar projection remains the same as last week. The currency is quoted at R$ 5.10.

Even if the inflation expectation exceeds the target ceiling, it can be said that, together, the IPCA, GDP and Exchange indices, released this Monday, indicate an improvement in the Brazilian economy in 2023.

By Brasil 61