This Monday morning, the 15th, the Central Bank (BC) released another Focus Bulletin with updated financial market perspectives on the Brazilian economy. Among the highlights, analysts cut the 2022 inflation estimate to 7.02 from 7.11.

It was the seventh drop, followed by the inflation forecast, in a central bank survey of more than 100 financial institutions. The downward trend occurred in the context of the recent introductions of tax exemptions on fuel and energy.

The National Monetary Council's (CMN) inflation target for 2022 is 3.5 and is considered met if it oscillates between 2 and 5. However, the central bank has already recognized that the target ceiling will be exceeded as in 2021.

Brazilian inflation, measured by the Broad Consumer Price Index (IPCA), fell by almost 0.7 in July, reported the Brazilian Institute of Geography and Statistics (IBGE) on August 9. The drop is the biggest in the historical series that began in 1980.

According to IBGE research, accumulated inflation is 4.77 for the year and 10.07 in the last 12 months. 

Also according to the BC Bulletin published this Monday, the economists consulted began to predict an increase in the Gross Domestic Product (GDP) of 2 this year, the same value indicated by the Ministry of Economy. It was the seventh upward review made by financial institutions.

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