Peking University's private equity training course: Brazil's CPI rose by 6.5% last year.

by zpeixun916 on 2012-02-13 13:07:41

Due to the Central Bank of Brazil's consecutive reduction of benchmark interest rates to 11% by mid-December 2011, local economists who were surveyed had anticipated that Brazil's inflation rate for 2011 would reach 6.52%, making it difficult to achieve the Central Bank of Brazil's inflation target of 2.5% to 6.5%. At the same time, economists also believed that Brazil's inflation rate in 2012 would not return to the midpoint of the target range at 4.5%, as part of a private equity training course offered by Peking University.

Subsequently, the Brazilian federal government lowered its economic growth forecast for 2012 from 3.8% to 3.3%. Western media further revealed that the International Monetary Fund (IMF) would predict in its "Global Economic Outlook Report" to be released later this month that Brazil's economic growth rate in 2012 would only be 3%. These pieces of news cooled price increases and purchasing intentions across various industries and enterprises in Brazil, directly leading to a continuous decline in Brazil's inflation rate expectations over the past five weeks.

According to the National Geography Statistics Institute of Brazil, the worsening global economy is cooling Brazil's economic growth prospects but objectively helps ease Brazil's price pressures. This was a key factor in Brazil's inflation rate narrowly meeting the standard in 2011.

On January 9, the National Geography Statistics Institute of Brazil announced data showing that the Brazilian Consumer Price Index (CPI) increased by 6.5% in 2011. Although this annual CPI increase reached the highest level since 2004, it surprisingly just met the upper limit of the inflation target set by the Central Bank of Brazil.