The president of the Central Bank (BC), Roberto Campos Neto, said this Tuesday (23) that inflation may end the year below 6.5%, but that there is still no reason to celebrate, as inflation remains persistent.
“When we look at Brazil, we see persistent inflation, but it is falling. This year, inflation will be at 6.5%, maybe a little less, but we will not celebrate that because we still have a lot of work ahead of us”, he said, during a presentation at the XVIII International Investment Seminar, promoted by Moneda Asset Management.
Campos Neto highlighted the monetary efforts and government actions adopted this year, such as cutting federal taxes, to try to control inflation in the country. However, he stated that it is “very difficult” to bring the IPCA within the target for next year, set at 3.25%.
“I think we are going to have two processes now, one of which is to make energy cheaper and the other is to control inflation. But to bring inflation from 5% to 3% or 2% is very difficult, because it is already very widespread. The process is different than that of varying the price of energy”, he pointed out.
The BC president also declared that “much of the work that the BC does is still not being observed by the market”, and that these actions will contribute from the next few months to lower inflation.
“We were one of the few countries to think that inflation would be more persistent, because we thought it was a demand problem as well, not just a supply problem,” he said.
Finally, Campos Neto highlighted that current inflation is different from what occurred in 2014 and 2015, during the Dilma government.
He also celebrated the recovery of the Brazilian economy amid the pandemic and the war in Ukraine, noting the drop in unemployment and the increase in GDP projections for 2022.
“When we look at GDP, we see that we went from 0% to 2.12%, our last projection. We see a lot of data pointing to revisions, of higher growth and lower inflation. This is the result of several reforms that we have carried out in the past, in the last 4 years we have carried out several reforms in Brazil, and this has contributed to boosting the economy”, he pointed out.
“The job market is the biggest surprise for us. You will not see any country that reduced unemployment by 5% during the crisis like Brazil,” she concluded.
Source: CNN Brasil
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