Brazil Faces Persistent Double-Digit Inflation: Chart

(Bloomberg) — Brazil’s central bank has signaled that a likely extension of the tightening with a smaller hike in June would be appropriate to bring inflation expectations back to its 3.5% target for 2022. The bank is preparing to end a adjustment cycle that has added 10.75 percentage points to borrowing costs in nearly a year and faces persistent double-digit inflation and forecasts of rising consumer prices, with estimates that the CPI will exceed 9% at the end of the year. But the risk is that extending the cycle of hikes causes a greater slowdown than anticipated in the coming quarters.

More stories like this are available on bloomberg.com

©2022 Bloomberg LP