CNN Brasil: 06/16/2023
Cheap dollar and cut in gas prices take to new round in revisions on inflation
Banks and brokers are cutting projections on the 2023 IPCA [Consumer Price Index] as recent data indicate a scenario with more relief in prices
The new price cut of gasoline by Petrobras, announced on Thursday (15), combined with a consistently cheaper US dollar, is fueling a new wave of downward revisions in economists’ projections for inflation in 2023.
Some banks and brokerages suggest that the inflation rate could reach 5% or even lower by December.
“The dollar was an essential condition for our revision,” says Andrea Damico, chief economist of Armor Capital, who, on this Thursday, lowered her projection for the IPCA (Consumer Price Index) in 2023 for the second time.
The investment management company’s projection started June at 5.4%, was reduced to 5.1% last week, and now stands at 4.8% after the announcement on Wednesday (14) that S&P raised the credit outlook for Brazil.
“We already saw a greater reduction in Brazil’s risk premium with the potential approval of the fiscal framework and tax reform,” Andrea said.
