Brasília, January 13, 2003 (Agência Brasil - ABr) - Minister of Finance, Antônio Palocci, said today that it has practically been decided by the economic team that the inflation targets established by Fernando Henrique Cardoso's administration will not be altered. In his view, over the long run, it will be possible to bring things in line with the targets set by the previous administration. "The current administration should use a longer period to attain this objective," he pointed out.

This year's inflation target is 4%, with a 2.5% margin for more or less.

Palocci said that the administration will also operate with a definition of targets that will be adjusted by the Central Bank. The way in which this will be done will be decided at the next meeting of the Monetary Policy Council (Copom). Palocci added that inflation has already been showing signs of decline in wholesale and retail prices. (DAS)