Bloomberg News

Brazil 2012 Budget to Assume Inflation Over 5.5%, Gurgacz Says

October 10, 2011

Oct. 10 (Bloomberg) -- Brazil’s central bank will miss its 2012 inflation target by at least one percentage point, according to estimates made by a congressional budget committee.

Consumer prices will rise 5.5 percent or more next year, Alcir Gurgacz, the senator responsible for the congressional budget committee’s revenue report, said in interview today. Central Bank President Alexandre Tombini has repeatedly pledged to slow inflation to the 4.5 percent midpoint of the bank’s target range in 2012.

The government’s revenue will be around 20 billion reais higher ($11.3 billion) than the 1,097 trillion reais forecasted by President Dilma Rousseff’s government, Gurgacz said. The senator will present his report to the committee tomorrow morning.

Consumer prices rose 7.31 percent in the year through September, exceeding the 6.5 percent upper limit of the central bank’s target range for a sixth straight month.

--Editor: Robert Jameson

To contact the reporter on this story: Maria Luiza Rabello in Brasilia at mrabello@bloomberg.net;

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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