Brazil’s economic activity contracted in March for the first time this year as above target inflation curbs demand.
The seasonally-adjusted economic activity index, a proxy for gross domestic product, fell 0.11 percent from the prior month, after growing a revised 0.02 percent in February, the central bank said today in a report posted on its website. The median estimate of 27 economists surveyed by Bloomberg was for a 0.1 percent contraction.
President Dilma Rousseff’s administration has struggled to boost economic growth in the world’s second-largest emerging market. Quickening inflation has curbed purchasing power and prompted the central bank to lift the key rate in nine straight meetings.