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Economic Research

Brazil: High Inflation in January

RGE expects the IPCA headline inflation to increase by 0.76% m/m in January, after rising 0.63% m/m in December, pushing the yearly headline inflation reading to 5.92% from 5.91% and away from the central bank target of 4.5% (+/- 1%). Although food prices might show some deceleration to 1.2% m/m from December’s 1.32% m/m, other components in the index, such as transportation, education and personal expenditures, should keep inflation under pressure. Demand-pull pressures are expected to remain in place, keeping core[...]

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