Brazilian inflation to hit 6.53pc

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BRASILIA, July 22 (AFP): Inflation in Brazil is expected to heat up to 6.53 per cent this year, a central bank survey of economists showed yesterday, a figure uncomfortably above the government's target of 4.5 per cent.

The projection was also notable because it was higher than the ceiling set by the central bank of 6.5 per cent.

The central bank aims for inflation varying within a range of two percentage points on either side of the government target, or between 2.5 and 6.5 per cent.

The market was expecting Brazil's central bank to try to rein in inflation by hiking the main interest rate a half a percentage point to 12.75 per cent Wednesday.