Brazil 2005 inflation view falls to 5.4 percent

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SAO PAULO, Brazil, Aug 15 (Reuters) - The average market forecast for Brazil's benchmark inflation index fell on Monday for the 13th straight week to 5.4 percent, bringing it closer to the central bank's 5.1 percent target for 2005.

The forecast for 2006 price increases as measured by the IPCA Broad Consumer Price Index for the first time in 64 weeks slipped below 5 percent to 4.98 percent, the central bank's weekly survey of some 100 economists on Monday showed.

That would be higher than the central bank's 4.5 percent target for next year.

With inflation slowing, Brazil's central bank is widely expected to cut its benchmark Selic rate, currently at 19.75 percent a year, at its monthly monetary policy meeting in September. Few economists expect a cut at August's meeting on Wednesday.

Reuters