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August IPCA Inflation Due

BRAZIL
  • Annual IPCA inflation is expected to edge higher to 4.66% Y/y, up from 4.24% at the mid-August reading. Upward pressures are expected to derive from vehicles following the conclusion of the government’s discount program and gasoline due to the recent increases in refinery prices. Data is unlikely to sway the central bank from cutting rates by a further 50bp next week, with year-end expectations for inflation remaining steady in yesterday’s latest Focus survey at 4.93%. Data is due at 1300BST/0800ET:
    • Aug. IBGE Inflation IPCA Y/y, est. 4.66%, prior 3.99%
    • Aug. IBGE Inflation IPCA M/m, est. 0.28%, prior 0.12%

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