“Inflation should be more resilient from 2023 onwards”, says economist

In an interview with CNN Brazil This Monday (8), Daniel Couri, executive director of the Independent Fiscal Institution of the Senate (IFI), said that inflation will cool down in the short term due to the government’s tax cut, but the rise in prices should return more persistent from 2023.

“Inflation will decrease until the end of 2022, but part of the measures, particularly those that reduce federal taxes, put inflation into next year”, he highlighted.

“These measures have an immediate positive effect, they will affect fuel prices and people will be more satisfied at this moment, but we have to look at the whole picture, which involves inflation that is perhaps more resilient. That is, when these measures are extinguished in January 2023, we will have a greater impact”, he added.

The specialist projected inflation outside the target next year, after indicators from the BC that it will not be able to make it stay within what was stipulated. Couri said that growth next year should also be lower.

“This has a negative effect on people’s lives, which will offset part of the positive effects with the measures taken now”, he pointed out.

Source: CNN Brasil

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