Inflation outlook for Brazil cut by economists
The prospect for high inflation in the Brazilian economy during 2007 has fallen further, economists have said.
Business news agency Bloomberg stated that Brazilian economists have cut their consumer price index inflation forecast to 3.7%, down from 3.73%, thanks partly to the strengthening performance of the country's currency.
As a result, imported goods have cheapened, keeping price increases and therefore inflation in check.
Solange Srour, chief economist with Mellon Global Investment, told Bloomberg: "The increased competition among national and imported goods is helping curb inflation."
The survey also showed that economists have upped their GDP growth estimates to 3.6% - something that could be revised again for this year and next, Mr Srour added.
Recently, investment firm Equity International revealed that now is a good time to invest in Brazil, since all the signs are that the economy will continue to expand.
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