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Annual IPCA Inflation Data Expected To Fall Back Below 10%

BRAZIL
  • After consistent acceleration for the past 18 months, 12-month IPCA inflation is expected to finally tick down in December, however, the annual rate is to remain close to 10%.
    • The respite in fuel prices will be the main driver of a slower monthly headline. That will help offset a likely acceleration in food prices, pressure from utilities tariffs and the seasonal rise in apparel prices.
  • National statistics agency IBGE to release report at the top of the hour:
    • 1200GMT/0700ET – Dec. Inflation IPCA – Est. 0.64% M/m, Prior 0.95%
    • 1200GMT/0700ET – Dec. Inflation IPCA – Est. 9.96% Y/y, Prior 10.74%
  • Additionally later today, central bank chief Roberto Campos Neto is expected to deliver a letter to the Economy Ministry explaining reasons why central bank did not meet inflation target for 2021.

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