INSUBCONTINENT EXCLUSIVE:
This marks the 17th consecutive upward revision.For 2026, inflation projections rose slightly to 4.30%, both figures well above the central
interest rate hikes, raising the benchmark Selic rate to 13.25% in January and signaling further increases
Economists anticipate the Selic rate will peak at 15% by the end of 2025 before easing to 12.50% in 2026.However, these measures have yet to
anchor inflation expectations, as external pressures like a weakened Brazilian real exacerbate price instability
The real has depreciated significantly, crossing R$6 per United States dollar, which increases import costs and adds to inflationary
(Photo Internet reproduction)Economic growth forecasts have also dimmed amid these challenges
For 2026, growth is forecasted at a modest 1.70%.High borrowing costs and reduced fiscal stimulus are expected to weigh heavily on cyclical
sectors like durable goods and services
show resilience, with projected surpluses of $76.8 billion in 2025 and $78 billion in 2026
Foreign direct investment inflows are expected to remain stable at $70 billion in 2025 and $75 billion in 2026.This reflects investor
confidence in certain sectors of the economy
The inflationary surge stems from a mix of global and domestic factors, including rising food prices driven by supply chain disruptions and
There are concerns that government spending could further fuel inflation.The Central Bank faces a delicate balancing act as it seeks to
stabilize prices without stifling economic growth
financial conditions ahead.
