Brazilian consumers believe that the country’s official inflation will be 5.3% in the next 12 months. The result of the survey, carried out this month by Fundação Getulio Vargas (FGV), was above the inflation expectations of January this year, which was 5.2%, and February 2020, which was 5%.
The study is based on interviews with consumers in seven of the main Brazilian capitals. They are asked the following question: in your opinion, how much will inflation be over the next 12 months?
“The increase in the average expectation of consumer inflation for the next 12 months has been influenced by the upward movement in food and beverages, products with a high share in the consumption basket of individuals. Sustaining prices, despite weak economic activity, is associated with the granting of emergency aid and increases in commodities ”, said today (23), in Rio de Janeiro, Viviane Seda Bittencourt, FGV researcher.
In February, 15.2% of consumers estimated rates below the inflation target for 2021 (3.75%), a percentage point above the previous month. On the other hand, the proportion of consumers who believe in rates above the upper limit of the inflation target for 2021 (5.25%) was 27.1%, 2.6 percentage points below that recorded in January.