After the April Market Expectations Survey (REM) published by the Banco Central, inflation expectations continue to grow. Market analysts predicted that the Consumer Price Index (CPI) will increase by 65.1% in 2022. The number soared 5.9% from last month’s estimates.
REM participants also revised inflation forecasts for 2023, placing it at 50.5% year-on-year, which showed a rise of 3.1% more than the REM for March. And for 2024 they estimated an inflation of 43.7% year-on-year, that is, 2.8% higher than the previous survey.
Refering to core inflation the consultants estimated that it would reach 64,2% year-on-year at the end of 2022, 4.2% more than the March survey.
Due to high inflation, wages lose more than 20% of real purchasing power
On the other hand, the consultants indicate that they expect a growth of the Gross Domestic Product (GDP) for 2022 of 3.5%0.3% more than the previous REM.
Regarding the exchange rate, the REM analysts slightly corrected their monthly projections and they expect it to reach $155 per dollar in December 2022and that it is located at $226 per dollar at the end of 2023.
As for the unemployment rate, it fell to 7,5% in the Economically Active Population (PEA) in the first quarter of 2022. And for the second quarter it is expected to fall to 7.9% and 7.8% in the third.
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