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Brazilian economists foresee lower inflation for first time in 2016

Xinhua, March 1, 2016 Adjust font size:

Brazilian economists have foreseen a lower inflation rate for 2016, the first time since December 2015, says a report of the country's Central Bank on Monday.

The Focus market survey, which is carried out weekly by the Central Bank, gathered perspectives of economists from over 100 financial institutions in Brazil.

Economists estimated that inflation will be 7.57 percent, a slight drop from the previous estimate of 7.62 percent. The estimate for 2017 remained stable at 6 percent.

The figures show an improvement compared to 2015, when inflation hit a 12-year-high of 10.67 percent. However, the estimated inflation rate is still way above the target of 4.5-6.5 percent for 2016.

In addition, lower inflation is accompanied by the bad news of slower GDP growth. Economists believe that Brazil's economy will fall 3.45 percent, worse than the previous estimate of a contraction of 3.4 percent.

Official GDP figures for 2015 are expected later this week to see how much the economy has shrunk. Many indicators show deterioration of Brazil's economic activities last year. Its investment grades have also been downgraded by international rating agencies.

The country's political difficulties also add pessimism to the country's economy. Endi