In your latest quarterly inflation report you suggested that you'd overshoot the target. Is that correct?
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| Martin Redrado, President Banco Central de la República |
We didn't exactly say that. What we said was that the deceleration in inflation that we had in the second quarter was not going to continue. We had 2% inflation in the second quarter and the reasons behind this will not continue.
Some people interpreted that as saying that inflation was going to increase. What we said is that in the first quarter inflation was 4% and there was a strong deceleration in the second quarter, but this has made it difficult for us [to hit] the 8% target we have for this year.
So what rate do you envisage this year?
I don't want to make a projection in the middle of the year. What we have to analyse is: what are the factors that lie behind the new environment that we face? Core inflation, that is, taking out seasonal products and regulated products, is projected to be 5.7%