UPDATE 1-Brazil 2013 inflation view rises for 6th week - survey

Wed Feb 13, 2013 9:46am EST

Related Topics

* Consumer prices to rise 5.71 pct in 2013, economists say
    * Outlook for interest rates remains unchanged in survey
    * Economists cut 2013 growth view, raise 2014 forecasts


    SAO PAULO, Feb 13 (Reuters) - Economists raised their
forecasts for Brazil's 2013 consumer price inflation for the
sixth straight week, a weekly survey showed on Wednesday, after
the government recently reported the fastest monthly inflation
rate in nearly eight years in January.
    The median forecast in a central bank poll of about 100
economists showed 12-month inflation should end 2013 at 5.71
percent, up from 5.68 percent in the prior week's survey.
    The country's benchmark IPCA consumer price index
 rose 0.86 percent in January, the highest monthly
reading since April 2005, the government IBGE statistics agency
said Thursday. In the 12 months through January,
inflation rose 6.15 percent, the highest reading in a year.
 
    In the latest central bank survey, economists kept unchanged
their forecasts for the benchmark interest rate. This contrasts
with growing bets in futures markets that the central bank may
need to raise the rate later this year to keep inflation within
the target.
    The central bank targets inflation at 4.5 percent, with a
tolerance margin of plus or minus 2 percentage points.
    The recent inflation surge highlighted growing calls for
structural reforms in Latin America's largest economy, and added
pressure on President Dilma Rousseff as she tries to revive
economic growth. 
    Economists also lowered their forecasts for economic growth
as measured by gross domestic product in 2013 to 3.09 percent.
They raised their estimates for 2014 GDP growth to 3.80 percent,
according to the survey.
    In February, consumer prices are expected to rise 0.41
percent, up from a previous forecast of 0.40 percent, the poll
showed.
    
 
    
 (pct)                2013                 2014
                      previous   new       previous  new
                      forecast   forecast  forecast  forecast
 Consumer inflation   5.68       5.71      5.50      5.50
 Exchange rate        2.05       2.03      2.07      2.05

 Interest rate        7.25       7.25      8.25      8.25

 GDP growth           3.10       3.09      3.70      3.80
 Industrial output    3.17       3.10      3.70      3.70
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