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April IPCA Inflation Data Due At 1300BST / 0800ET

BRAZIL
  • IPCA inflation is expected to decline to 3.66% y/y in April, from 3.93% the month before, which would bring the headline rate to its lowest since last June (3.16%). In m/m terms, prices are expected to rise by 0.35%, following a 0.16% gain in March. The data will be released at 1300BST(0800ET).
    • April IBGE Inflation IPCA YoY, est. 3.66%, prior 3.93%
    • April IBGE Inflation IPCA MoM, est. 0.35%, prior 0.16%
  • On the political front, Finance Minister Haddad will meet with IDB President Ilan Goldfajn at 1900BST(1400ET).
  • Meanwhile, Haddad said yesterday that the government will respect the 2027 deadline for payroll tax exemption in some sectors of the economy, saying that each year there will be a resumption of 1/4 of the tax rate, so that by 2028 there will be no difference between sectors. The proposal will now be taken to the Supreme Court, where the topic is under discussion. Haddad also said that payroll reform will be discussed in 2025.

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