Brazil economists raise 2026 inflation forecast amid Middle East war

SAO PAULO, March 30 (Reuters) - Brazilian economists polled weekly by the central bank increased their inflation forecast for this year amid recent developments in the U.S.-Israel war on Iran, the so-called Focus poll showed on Monday.

* Consumer prices, as measured by the IPCA index, are now seen rising 4.31% this year, compared with a prior 4.17% estimate.

* It was the third consecutive week that economists raised their 2026 inflation forecast.

* The IPCA projection for 2027 rose to 3.84%, up from a 3.80% estimate the prior week.

* Since the conflict in the Middle East began, a surge in oil prices has increased global inflation concerns, clouding economic outlooks for the year.

* The new scenario also led the economists to forecast that Brazil's central bank will cut its benchmark Selic rate by 25 basis points to 14.50% at their next meeting in April.

* They had previously forecast a larger cut of 50 basis points in the upcoming decision, after the monetary authority kicked off an easing cycle earlier this month. (Reporting by Eduardo Simoes and Fernando Cardoso; Editing by Aida Pelaez-Fernandez)