BRASILIA, Dec 23 (Reuters) - Brazil’s central bank raised its inflation forecast for next year to near the ceiling of the official target, signaling it could resume interest rate hikes to tame a surge in price expectations.
In its quarterly report released on Wednesday, the bank raised its 2016 inflation forecast to 6.2 percent from 5.3 percent previously. However, the bank sees annual inflation dropping to 4.8 percent in 2017.
The central bank aims to keep inflation at the 4.5 percent, center of the official target range between 2.5 and 6.5 percent.
The bank reiterated in the report that it take all measures needed to bring double-digit inflation to within the range next year and then to the center of the target in 2017. Annual inflation in November was 10.48 percent. (Reporting by Alonso Soto; Editing by Alison Williams)