Brazil meets inflation target by the skin of its teeth

Perhaps a little against the odds, the Brazilian Central Bank (BCB) just about met its inflation target last year as headline inflation slowed to 6.5% in December. Although it may be sticky, inflation should continue to ease over the course of this year and interest rates will probably be cut to 9.5% by mid-year. By contrast, inflation ended 2011 above target in Chile after a larger-than-expected rise in December.

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