The market forecast for Brazil's inflation this year as gauged by the Broad National Consumer Price Index (IPCA) has been revised up for the fourth straight time, going from 7.12% to 7.19%. The inflation projection for 2017 has remained stable at 5.50% for four weeks. The figures are in the Focus Market Readout, a survey of financial institutions' expectations released by the Central Bank (BC) every Monday.

These projections are above the official inflation target of 4.5%. The upper target range set by the government for inflation is 6.5% this year and 6% in 2017. The Central Bank has the role of making sure inflation stays within the target, by using such tools as the interest rate (SELIC) to influence the economy.

Last week, the Monetary Policy Committee (COPOM) of the Central Bank decided to keep the SELIC rate at 14.25% per annum, based on the high cumulative inflation rate in the past 12 months and the well-above-target projections.

The decline in Gross Domestic Product (GDP) expected by the financial market has been revised from 3.71% to 3.60%. In 2017, the GDP was projected to grow 1%, up from last week's 0.85% forecast.