Alexandre Schwartsman, former director of the Central Bank (BC), said this Friday (10), in an interview with CNN, that the entity is trying to bring inflation to the target, set at 3.75%, with a tolerance of 1.5 percentage points higher or lower.
“The central bank is trying to bring inflation to the target, but it is struggling with the fact that market participants’ belief in the future is quite pessimistic. Expectations for inflation, not only for next year, but for 2023, are already deviating significantly from the target. The Central Bank has no other alternative at the moment than to raise the interest rate”, declared Schwartsman.
Today, the IBGE (Brazilian Institute of Geography and Statistics) announced that the IPCA (Broad Consumer Price Index) slowed down by 0.95% in November against 1.25% in October. The result of November this year was the highest for the month since 2015, according to data from the Institute.
According to Schwartsman, in addition to reaching the goal, the Central Bank has the objective “of not imposing very high costs”. The main pressure on prices in the month was in the transport sector, with 3.35%, due to fuel costs. Gasoline increased by 7.38% in the period, being the factor that weighed most in the sector.
Inflation for low-income families, in turn, was 0.84% in November. The index was below October this year, with 1.16%, and November last year, with 0.95%.
Reference: CNN Brasil
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