BC will do ‘everything it can’ to ensure inflation is on target in 2022, says director – 11/10/2021 – Market

Director of International Affairs and Corporate Risk Management at BC (Central Bank), Fernanda Guardado, said on Monday (11) that the monetary authority will do “everything in its power” to lead to inflation Towards the target in 2022. The announcement was made during a virtual event held by the IIF (Institute of International Finance).

“We will do what we can to bring inflation to target,” he said.

Fernanda assessed that inflationary pressure in Brazil is more concentrated in items such as food and electricity.

According to her, the increase in these prices is usually temporary, although the current shock is taking longer than initially expected.

Financial markets have risen, for the 12th consecutive week, estimates the IPCA (National Expanded Consumer Price Index) in 2022, to the latest edition of Focus Bulletin, released on Monday by British Columbia. The expected rise increased from 4.14% to 4.17%.

This projection is above the center of the inflation target for next year, but still within the tolerance range. In 2022 the target center will be 3.5%. The tolerance range is between 2% and 5%.

inflationary pressure It gained traction throughout the pandemic. In September, IPCA Break the two-digit symbolic barrier Do not accumulate for 12 months. or pointer reached 10.25%, the largest change since February 2016 (10.36%), according to data released Friday (8) by IBGE (Brazilian Institute of Geography and Statistics).

The IPCA build-up through September is nearly double the ceiling of the inflation target that British Columbia pursued in 2021. The cap is 5.25% this year. Position is 3.75%.

British Columbia President Roberto Campos Neto predicted the fourth of this inflation It will peak in September by the IPCA. “September should be the peak of inflation in 12 months,” he said at the time. “We understand that there is a greater element of persistence, and therefore, we are more consistent in terms of interest.”

Campos Net He returned to talk about the topic on Friday (8).When Petrobras announced 7.2% re-adjusted petrol and cooking gas prices in refineries. In the British Columbia president’s view, higher gas prices should reflect a further deterioration in market inflation expectations.

Brazil has taken a big leap [nas expectativas de inflação] As we look to 2021, it’s likely to get even worse with the gas increase announced today. [sexta-feira]Campos Neto noted, during an online event promoted by Itaú BBA.