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Consumer inflation expects lower level in nine years

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Brazilian consumers are more confident about prices and the economic scenario

Consumers are increasingly optimistic about the economy. In the middle of a scenario of falling prices, lower interest rates and high  confidence, a survey by the Getulio Vargas Foundation (FGV) shows that Brazilians' expectations of inflation in the next 12 months fell from 6.4% to 5.9% , the lowest level since 2008.

For the entity, the fall in inflation in recent months has impacted the perception of Brazilians in a positive way. "Consumers' expectation of inflation continues to fall. The factor that contributes most to this trend of falling expectations is the perception of current inflation, "said FGV economist Pedro Costa Ferreira.

Most of the interviewees expect inflation to be within the parameters of the Central Bank, of 4.5%, with a tolerance of 1.5 percentage points upwards or downwards.

Faced with Brazil's history of hyperinflation, respect for price controls is a commitment that the Brazilian government will act to avoid a scenario of high inflation, which erodes wages, increases inequality and affects economic stability.

In this way, by respecting the inflation target, now 4.5%, the government gives more security to families, companies and investors that it is committed to stability and the direction of the economy.

Source: FGV