The Central Bank’s Monetary Policy Committee (Copom) pointed out on Wednesday that the rise in commodity prices continues to put pressure on inflation. On this day, the collegiate decided to raise the Selic (the basic rate of the economy) by 0.75%, from 2.75% to 3.5% per year. “With the exception of oil, international commodity prices have continued rising, with an impact on price projections of food and industrial goods. In addition, the transition of the tariff to higher levels should keep inflation under pressure in the short term”. Even so, Copom reinforces the diagnosis of momentary setbacks. The measures of core inflation are in the line with meeting the inflation target. Regarding the external scenario, the BC’s assessment is that the new fiscal stimuli in some developed countries and the advance of vaccination against covid-19 should lead to a “more robust” recovery in activity throughout the year.
Source: Canal Rural (*Translated by Ia Niani)