Latin America Economics

Latin America Data Response

11 January, 2019

Brazil IPCA (Dec.)

The fall in Brazilian inflation to a seven-month low of 3.7% y/y in December, coming alongside the continued strength of the real, means the central bank is likely to strike a more dovish line in the next few months. But there are tentative signs that underlying price pressures are starting to strengthen. And it still seems more likely than not that a tightening cycle will start later in the year.

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