Weekly Report - 21 May 2026 (WR-26-20)

BRAZIL | Government raises inflation forecast. Brazil’s finance ministry’s economic policy secretariat (SPE) released a new edition of its Boletim Macrofiscal economic report on 18 May, which showed an annual inflation forecast of 4.5% for 2026, up from the SPE’s previous forecast of 3.7%. The latest forecast would be the upper limit of the official inflation target range of 3.0% +/-1.5. According to the report, the global oil price shock resulting from the conflict in the Middle East was the main reason behind the SPE’s higher inflation forecast.