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Government forecasts inflation of 3.2% in 2017 and improves salary estimation


Figures were announced on Friday (17) by the Ministry of Planning, Development and Management

In view of the significant drop in prices in recent months, the Ministry of Planning, Development and Management has revised from 3.5% to 3.2% the level foreseen for the Broad Consumer Price Index (IPCA), an indicator that measures official inflation of Brazil.

The data are included in the Report of Evaluation of Revenues and Expenditures of the fourth quarter, a document released every two months and that serves to monitor the behavior of public accounts. In this report, R $ 7.51 billion were released from the federal budget. 

As a result, the Brazilian Government's estimate is in line with the forecasts drawn by experts, which point to an inflation of 3.09% in 2017.

One of the great economic highlights, inflation this year fell surprisingly in the face of the economic reforms implemented by the Government of Brazil, as well as the forecast of a record high, which led to the cheapening of food. Today, inflation is at 2.70%, against a level of 9.32% registered in May last year.

Salary mass

Sum of all the salaries paid during the year, the Brazilian salary mass also has prospects of improvement, according to the document released on Friday (17). Now, the Ministry of Planning expects a 5.1% increase in the salary mass, compared to an earlier estimate that expected a growth of 4.7% in this item.

"The salary mass has risen as a reflection, mainly, of the improvement of the labor market that has been verified month by month, which has impacted the unemployment rates," said the Minister of Planning. For him, the number of employed Brazilians increased, which also improved the wage bill forecast in 2017.

Although high, unemployment has been declining gradually since the beginning of the year. The formal labor market, however, is a sign of the wind. According to the balance of layoffs and hiring of the private sector, Caged, 208,800 formal jobs were created from January to September.

Source: Government of Brazil, with information from the Ministry of Planning , IBGE , Ministry of Labor and Central Bank