Energy prices expected to spur Brazil's inflation

Central Banking staff
28 Mar 2002

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BRAZIL - Strong energy prices are likely to drive Brazil's inflation higher than initially expected this year and next, the country's central bank said Wednesday.

Renewed inflationary pressure could mean that the recent downward trend of interest rates may be shorter lived and economic recovery more moderate than some investors had hoped.

The central bank said it expected inflation to reach 4.4 per cent this year and 2.8 per cent next year, up from last December's projections of 3.7 and 2.5 per

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