Brazil inflation forecasts surge above target

Brazilian economists have significantly increased their inflation forecasts for 2026, projecting figures that now exceed the central bank's target ceiling. This upward revision is largely attributed to the escalating energy shock stemming from the conflict in Iran, which is driving up fuel costs and broader price pressures across the economy. The situation presents a considerable challenge for policymakers aiming to maintain price stability and manage economic growth amidst global geopolitical uncertainties.