By Rogerio Jelmayer

SAO PAULO--Economists reduced slightly this year's end inflation estimate for Brazil, as the country's poor economic performance is likely to slow pressure on prices, according to the central bank's latest weekly survey of 100 economists.

Economists now expect inflation, as measured by the consumer-price index, to be 6.88% this year compared with last week's estimate of 6.89%, the survey showed. It marked the seventh reduction of inflation forecasts for this year.

For next year, economists maintained their inflation forecast for an increase of 5%.

Economists kept their outlook for the year-end Selic benchmark interest rate at 13.5% and reduced their view for the next year to 10.75% from 11%.

Economists expect Brazil's gross domestic product to contract 3.3% this year, versus the 3.22% contraction seen in last week's survey. Last year, Brazil's economy shrank 3.8%, according to the country's statistical bureau.

For 2017, economists cut their view of GDP growth to 1.21% from 1.23%. They cut their 2016 projection of Brazil's trade surplus to $48 billion from $48.06 billion.

Write to Rogerio Jelmayer at

(END) Dow Jones Newswires

October 31, 2016 07:03 ET (11:03 GMT)

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