Brazil's central bank says inflation under control

BRASILIA : Brazil 's inflation is under control and will converge toward the center of the government's target in 2012,

Published September 27, 2011 Updated September 27, 2011 03:59pm

1 min

By Imad Uddin

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The domestic economy is slowing due to domestic policies and a worsening global economic scenario, according to a draft presentation by Central Bank President Alexandre Tombini.

Tombini is speaking to lawmakers in the Senate's economic affairs committee.

Analysts in a weekly central bank survey released on Monday forecast the benchmark IPCA inflation index would rise to 6.52 percent this year -- up from a previous forecast of 6.46 percent and just above a 6.5 percent government ceiling.

Global and domestic factors have pushed up consumer prices this year, from severe weather in major food-producing countries, which hit commodity prices, to wage growth in Brazil.

A recent weakening of the real has only added to those worries because it makes imported goods pricier for Brazilians.

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