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Brazil Inflation Measure Ahead of Expectations

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  • Brazil’s FGV CPI IPC-S inflation measure came in ahead of expectations, at 0.94% vs. Exp. 0.74%. This marks the highest reading in the series since November last year.
  • In a note dated yesterday, Deutsche Bank wrote that they see the BRL as still undervalued relative to its EM FX peers, reiterating their long BRL/TRY trade idea. The recommendation is in part based on the greater correlation between the performance of EMFX and post-COVID fiscal adjustments, with Brazil’s actions among the strongest.
  • In Chile, finance minister Marcel stated that the government will present tax reform proposals by June, and will go through consultation processes across April. Pensions reforms and proposals to raise the minimum wage will be part of the discussions.
  • Colombia’s electoral watchdog has dropped plans for a recount of ballots at March’s election, meaning the leftist bloc headed up by Gustavo Petro should hold the largest number of seats in the upper house.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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