Brazil analysts forecast inflation will exceed the 10 percent threshold by the end of this year for the first time in 12 years as the central bank keeps the benchmark rate on hold.
Inflation will accelerate to 10.04 percent by year-end, up from 9.99 percent a week earlier, according to the Nov. 13 central bank survey of about 100 analysts. Consumer price will increase 6.5 percent next year, at the top of the central bank’s target range of 2.5 percent to 6.5 percent.
Brazil’s economy is caught between accelerating inflation and what’s shaping up to be the longest recession since the 1931. The outlook for 2016 inflation has steadily worsened all year, as Finance Minister Joaquim Levy struggles to shepherd fiscal austerity measures through Congress.