(Bloomberg) — Brazilian analysts raised 2024 inflation expectations for the fourth week in a row and now expect consumer prices to rise above the tolerance range as investors increase concerns about public spending.

Consumer prices are expected to rise 4.55% in December, above last week’s forecast of 4.5%, according to a weekly central bank economist survey released Monday. Annual inflation is expected to reach 4 percent by the end of next year and 4.04 percent over the twelve-month period, similar to the bank’s horizon.

Central bankers led by Roberto Campos Neto are warning about the effects of higher government spending on efforts to slow inflation to a 3% target. As the government raises the minimum wage and expands remittances, households tend to consume more, possibly increasing the cost of living, policymakers said in speeches in Washington, D.C., last week. These concerns were behind their decision to raise interest rates to 10.75% last month.

Annual inflation rose to 4.47% in early October, just below the ceiling of the central bank’s 4.5% tolerance range. While electricity bills in residences rose rapidly due to the severe drought, there was also an increase in food and beverage prices.

Finance Minister Fernando Haddad struck a more optimistic tone, saying that inflation will remain within the bank’s tolerance range this year. Haddad told a news conference while attending the International Monetary Fund’s annual meetings last week that his team would soon announce measures to shore up public accounts without needing to reformulate the country’s fiscal rules.

Investors’ concerns about the path of Brazil’s public debt are weighing on assets such as the real, one of the worst-performing emerging market currencies this year. Campos Neto reiterated that a “positive fiscal shock” was needed to help reduce borrowing costs.

Analysts surveyed kept their year-end key interest rate forecasts constant at 11.75% for 2024 and 11.25% for 2025.

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