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UPDATE 1-Brazil's Goldfajn says CPI down, but doubts linger
October 7, 2016 / 2:37 PM / a year ago

UPDATE 1-Brazil's Goldfajn says CPI down, but doubts linger

(Adds Goldfajn comments and context)

By Christian Plumb

WASHINGTON, Oct 7 (Reuters) - Brazilian central bank chief Ilan Goldfajn said on Friday that inflation seemed to be receding, but doubts remained on whether that declining trend will continue ahead.

Inflation in Brazil eased more than expected in September to its lowest for that month in nearly two decades, further raising bets that the central bank will cut some of the world’s highest interest rates.

Speaking to investors on the sidelines of the International Monetary Fund and World Bank fall meeting, Goldfajn said he has seen some improvement in inflation expectations.

“The evolution of prices indicates an ongoing disinflationary process, but the speed of disinflation is still uncertain,” Goldfajn said in his speech.

In a press briefing after the speech, Goldfajn said the recent drop in food prices was a positive sign as well as the advance of austerity measures in Congress that bolsters confidence.

At its next meeting on Oct 18-19, the bank is widely expected to cut its benchmark Selic rate that at 14.25 percent is one of the highest among G20 economies. (Writing by Alonso Soto; Editing by Chizu Nomiyama)

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