Despite recent spikes, Brazilian inflation should close the year below 4.5%, the target ceiling, said this Thursday (24) the Minister of Finance, Fernando Haddad. In an interview in Washington, the minister said that the recent rise in indices represents a short-term rebound related to the exchange rate and the drought, not to the heating of the economy.
“Although the cores [de inflação] showed a higher than expected variation, inflation should remain within the target. In my point of view, the rise has more to do with the exchange rate issue and the drought than with any greater impulse in reiterated prices”, said Haddad in the North American capital, where he is participating in meetings of the International Monetary Fund (IMF). ), the World Bank and the G20 (group of the 19 largest economies on the planet, plus the European Union and the African Union).
Inflation cores exclude more volatile prices, such as fresh food and energy. This Thursday, the Brazilian Institute of Geography and Statistics (IBGE) announced that the Broad National Consumer Price Index 15 (IPCA-15), which serves as a preview of official inflation according to the IPCA, reached 0.54% in Octoberpressured by the level 2 red flag on energy and food tariffs. In the 12-month period, the indicator reached 4.47%, close to the target ceiling.
Appointments
In the morning, the minister met, for the second time in less than a month, with representatives from the risk rating agency Standard & Poor’s (S&P Global). At the end of September, Haddad and President Luiz Inácio Lula da Silva gathered in New York with representatives from two other agencies: S&P and Moody’s.
In December last year, S&P Global raised Brazil’s sovereign credit rating. According to Haddad, the risk rating agency itself approached the government to schedule the meeting in Washington, where the minister presented medium and long-term projections for the Brazilian economy to the executives.
Later this afternoon, Haddad participated in the last appointment of the trip to the United States, with an event by the Global Mobilization Task Force against Climate Change (TF-Climate) and a restricted IMF meeting with Finance ministers, in which the Fund Monetary will present global economic scenarios. Haddad and the Minister of Planning, Simone Tebet, return to Brazil this Friday (25).
