Brazil Lowers 2025 Inflation Estimate
(MENAFN) Brazil’s financial sector has revised its inflation estimate for 2025 downward to 5.1 percent from the previous 5.17 percent, marking the eighth straight week of declining forecasts, the central bank announced Monday.
The inflation projection for 2026 was also adjusted lower, dropping from 4.5 percent to 4.45 percent, the bank stated.
Based on the central bank’s weekly Focus survey, which polls leading financial institutions in Brazil, analysts attribute these improvements to the impact of the government’s tight monetary policies. Just four weeks ago, inflation for 2025 was expected to reach 5.24 percent.
The central bank maintains an inflation target of 3 percent, allowing a margin of plus or minus 1.5 percentage points.
Forecasts for the Selic benchmark interest rate held steady, with analysts expecting it to remain at 15 percent in 2025 and ease to 12.5 percent in 2026.
Economic growth estimates for Brazil stayed consistent at 2.23 percent for this year, while the 2026 forecast saw a slight reduction, moving from 1.89 percent down to 1.88 percent.
The trade balance outlook projects a surplus of 69.25 billion U.S. dollars in 2025 and 75.2 billion dollars in 2026, unchanged from previous estimates.
Similarly, foreign direct investment inflows into Brazil are expected to hold steady at 70 billion dollars for both years.
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