President Michel Temer said the country is likely to post an inflation rate below the 4.5% target this year. The statement was made today (Feb. 15) during a ceremony at the Planalto presidential palace.

“To our pleasant surprise, the inflation went from 10.70% to 6.23% in six months. For January, the rate was the best registered in 20 years, so now it's likely that we reach an inflation rate below 4.5%. This means hope and confidence for investors,” the president stated.

Finance Minister Henrique Meirelles believes that the approval of the reforms pushed by the government will also help the economy recover. “There is no doubt that the Brazilian economy is coming back to normal. With the approval of the [constitutional amendment capping public spending], the admissibility of the reform in the pension system, the introduction of the labor reform and all the microeconomic changes in progress, the Brazilian economy is sure to come back to normal,” he said.

Meirelles added that the ongoing overhauls and the monetary policy, efficiently implemented by the Central Bank, will allow the inflation to converge towards the target this year. The minister restated he expects that the economy shows a 2% increase in the last quarter of the year compared to the same period in 2016.