The IPCA (Broad Consumer Price Index) – which measures the country’s official inflation – fell by 0.68% in July, after rising 0.67% in the previous month, informed the IBGE (Brazilian Institute of Geography and Statistics) this Tuesday (9). And the trend for the coming months is for the IPCA to continue falling, says Victor Candido, chief economist at RPS Capital, in an interview with CNN .
The expert believes, however, that the 2023 index will remain above the Central Bank’s target. For next year, the National Monetary Council (CMN) established 3.25% for the IPCA, with a tolerance of 1.5 percentage points.
Candido also highlights that the tax cut defined by the government “messes up the scenario a bit [de juros e inflação dos próximos meses]”.
He also mentions that nobody knows what the price of oil and agricultural commodities will be until the end of next year. “But everything indicates that they will fall.”
But service and trade sector-specific inflation is expected to continue accelerating. He justifies that this movement should also take place on account of the tax cut and the benefits offered by the government, such as the R$ 600 aid, gas voucher and benefit to truck drivers start to be paid this Tuesday (9).
“[Com esses valores]people will have more money to spend”.
*With information from Agência Brasil
Source: CNN Brasil
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