Forex: Brazil’s expected inflation rates show a small rise

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According to a weekly central bank survey published on Monday economists increased their forecasted value for Brazil’s benchmark inflation index. Their estimated value for this year is at 6.02% as opposed to the previous estimate of 6.0%. Similarly to that their 2012 forecasts rose from 4.91% to 5.0%.

During the last two weeks the expected economic growth for Brazil has been at 4.0 % . Brazil is Latin America’s biggest economy and also one of the fastest growing economy’s in the world. Last year the country’s economy has risen by 7.5% which is a record high level for the past 24 years. Economists have also worried that Brazil’s central bank has not put enough effort to maintain consumer prices. The bank’s targeted inflation rate for the year is at 4.5% with the upper and lower bounds being 2% of this target. Brazil is a major international exporter and is a leader in exporting commodities such as coffee, orange juice.