Brazil will adopt continuous inflation target of 3 %

The Brazilian government will apply the necessary measures to adjust to the continuous inflation goal of 3 %, as indicated this Wednesday by President Luiz Inácio Lula da Silva.

Currently, the country is subject to annual inflation targets that must be met each calendar year set by Brazil’s National Monetary Council (CMN), the country’s main economic policy body.

According to the president, they have managed to maintain the existing goal, “the change in the deadline to evaluate compliance with the inflation goal was announced a year ago, but it depended on a presidential decree that has not yet been signed by Lula.”

In this sense, the goal of 3 % for the period 2024-2026 is equivalent to approximately 1.5 percentage points. In any case, the CMN must meet again to vote on the goal for 2027.

According to Finance Minister Fernando Haddad, the goal is to achieve “inflation targets within a continuous time frame,” given that a longer-term approach “offers more room to adapt to price shocks without requiring monetary tightening.”

The action of the Central Bank on the issue is crucial on the issue. In fact, on Tuesday Lula held a meeting with Gabriel Galipolo, director of monetary policy at the BCB, to study the inflation target.

It is appropriate to mention that the official will head the Central Bank once the term of the current director, Roberto Campos Neto, ends in December.

M.Pino

Source: finanzasdigital

(Reference image source: UX Indonesia in Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram