Brazil: Inflation Forecast Cut

Brazilian economists lowered their inflation forecast this year to 6.05 percent as the country’s slowing economy discourages companies from raising prices, according to a central bank survey. Inflation through mid June was up 7.7 percent year-on-year. A stronger real has hurt exports and consumer demand is waning after central bankers raised their benchmark interest rate to a 20-month high of 19.75 percent. Economists also cut their median economic growth forecast for the year to 3 percent, down from 3.5 percent at the end of May.