The plunge in Brazilian inflation last month, to 4.7% y/y, was driven by a sharp decline in food inflation; core inflation remains high and the headline inflation rate is set to rise again next quarter. As a result, we doubt this reading will prompt Copom to shift away from the hawkish line delivered at its latest meeting. Elsewhere, while overall Mexican industrial production rebounded in February, the key manufacturing sector struggled, which is likely to be a sign of things to come over the coming months.
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