Brasília - The market emitted a slightly lower forecast this week for inflation in 2004, compared with last week's estimate. The projected Broad Consumer Price Index (IPCA) was reduced from 7.37% to 7.34%. There were also decreases in the estimates for inflation this month (from 0.60% to 0.55%) and for the coming 12 months (from 6.25% to 6.23%). The forecast for inflation in 2005 remained unchanged at 5.80%.

These figures are part of the weekly survey conducted by the Central Bank with a hundred financial institutions and market analysts on the outlook for the chief economic indicators. This week's survey also indicates, for example, that the cumulative hike in public utility rates will reach 8.47% this year, a bit higher than last week's projection of 8.45%.

Agência Brasil
Reporter: Stênio Ribeiro
Translator: David Silberstein
09/27/2004