Consumer projects inflation of 11% over the next 12 months

The median expected inflation by consumers over the next 12 months stood at 11.4% in February, reported yesterday the Getulio Vargas Foundation (FGV).
Is the fourth month of high Inflationary Expectations indicator, consumers and the plateau represents new historical record-based on the series, which began in September 2005. In January, the indicator was at 11.3%.
"The February result indicates that the expectation of consumer inflation stabilized at the level of 11%," said economist Pedro Costa Ferreira, a researcher at FGV, in a note. "This result can be explained by the IPCA in the last 12 months [10.71%] and by rising prices of food and transportation and education costs," adds Fisher.
According to the institution, 60.2 percent of Brazilian consumers predict inflation above two digits in the 12 months from February, less than the January study (61.2%). However, almost half of them bet on rates above 12%, slice that advanced in the analysis period.