Economists in Brazil have announced a sixth consecutive reduction in their inflation forecast, with the IPCA (National Wide Consumer Price Index) now expected to close at 3.95% by the end of 2026. This marks a decrease of 0.02 percentage points from the previous week's Focus Bulletin assessment. Although this reduction shows optimism, it remains significantly above the Central Bank's inflation target of 3%, which allows a margin of 1.5 percentage points either way.

In addition to the revised inflation forecasts, the Focus Bulletin maintains its predictions for the next three years at 3.8% for 2027 and 3.5% for both 2028 and 2029. Other key economic indicators have also remained unchanged, with specialists anticipating the Selic rate to finish the year at 12.25%, followed by projected rates of 10.5% next year and 10% in 2028. This outlook reflects a consistent effort to manage inflation despite ongoing economic challenges in the country.

The forecast for the dollar's value remains stable at R$ 5.50 for 2026, while the GDP growth expectation is also projected at 1.8% for the year. While these economic indicators indicate cautious optimism regarding Brazil's economic recovery, the persistent inflation rates signal ongoing issues that need to be addressed by policymakers as the country looks towards sustainable growth in the coming years.