Central Bank Governor Alexandre Tombini Comments on Brazil 2012 Inflation

10/01/2013 9:51:00 AM

Consumer inflation, as measured by the benchmark IPCA index, closed 2012 at 5.8% (5.84%) and, therefore, the inflation target was met in 2012 for the ninth consecutive year, according to Presidential Decree 3088, enacted June 21, 1999, which set the parameters for Brazil´s Inflation Target Regime, and Resolution 3880, enacted June 22, 2010, which fixed the inflation target range for 2012.

In relation to what was observed in 2011, there was a slowdown in inflation. Nonetheless, in the second half of 2012, there were price pressures derived from unfavorable shocks in agricultural commodities, among other factors. In the short term, inflation has proved resilient, but the prospects indicate a return to a declining trend throughout 2013.