BRASILIA, Brazil - Brazil's Central Bank President Alexandre Tombini said on Tuesday there were lingering inflation risks in Latin America's largest economy although he said price pressures would slow in coming months.
Inflation in the services sector is a concern in an economy with strong growth prospects in the short to medium-term, he told a Senate hearing, adding that salary increases above inflation also needed to be watched.
Brazil's economy grew 7.5 percent in 2010 and its annual inflation is now running at around 6 percent, way above the center of the government's target of 4.5 percent, plus or minus two percentage points.
Another challenge for Brazil is an uncertain global economy, whose fragile recovery could be further hurt by trouble in the Middle East and the earthquake disaster in Japan, Tombini said.
Source: http://business.asiaone.com
Inflation in the services sector is a concern in an economy with strong growth prospects in the short to medium-term, he told a Senate hearing, adding that salary increases above inflation also needed to be watched.
Brazil's economy grew 7.5 percent in 2010 and its annual inflation is now running at around 6 percent, way above the center of the government's target of 4.5 percent, plus or minus two percentage points.
Another challenge for Brazil is an uncertain global economy, whose fragile recovery could be further hurt by trouble in the Middle East and the earthquake disaster in Japan, Tombini said.
Source: http://business.asiaone.com
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