Brazil’s inflation rate may exceed 6.5 percent in 2011

December 23rd, 2011 - 1:36 pm ICT by IANS  

Rio de Janeiro, Dec 23 (IANS) Brazil’s central bank has forecast that the country’s inflation rate for this year is likely to surpass the 6.5 percent upper limit set by the government.

In the first 11 months of 2011, Brazil’s accumulated inflation rate reached 5.97 percent, surpassing that registered during the entire 2010, according to a central bank report released Thursday.

The central bank also cut the growth projection for this year from 3.5 percent to 3 percent, compared with the government’s estimated GDP growth rate of 3.8 percent for 2011, Xinhua reported.

Finance Minister Guido Mantega has already admitted that the target is unreachable. In the first three quarters of 2011, Brazil’s GDP grew 3.2 percent year-on-year.

Mantega said Brazil’s economy registered zero growth in the July-September period, but he believed the stagnation was temporary and the economy would have a better performance in the fourth quarter.

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