Brazil's inflation forecasts shows anchoring only by Q2 17

The regulated price adjustments broadly influenced Brazil's Inflation forecasts . The Copom has affirmed that between Q2 15 and Q1 16, inflation forecasts will be higher, partially because of this and the upside surprise in recent prints. 

The Copom now expects regulated price adjustments to be 13.7%, and kept it at 5.3% for the next year.

Inflation forecasts for 2016 are not anchored yet. In the reference scenario, the Selic rate moved to 13.75% and the exchange rate to . 

For Q4 15, inflation is now at 9.0%, moving down to 4.8% in Q4 16, and reaching the mid-point of the target 4.5% by Q2 17. 

In the market scenario, with higher interest rates forecasts and weaker exchange rate expectations, the inflation forecasts moved to 9.1% in Q4 15, will be stable at 5.1% in Q4 16 and will reach 4.8% by Q2 17.