Oil market turmoil spreads to Latin America, Brazilian Ministry of Finance slightly raises inflation forecast for the year

⑴ The Brazilian Ministry of Finance released its latest economic forecast on Friday, slightly raising the inflation expectation for 2026 from 3.6% to 3.7%. This adjustment mainly reflects the transmission effect of a 10.8% increase in average crude oil prices caused by the conflict between the US, Israel, and Iran. ⑵ The economic growth forecast remains unchanged at 2.3%, indicating that policymakers believe the impact of rising energy prices has not yet disrupted the pace of fundamental recovery.