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Inflation Preview, Date Due – 1200GMT/0700ET

BRAZIL
  • Brazil: After a small decline in December, 12-month headline IPCA inflation should tick up in January, keeping price pressures in the spotlight even as the BCB prepares to decelerate the pace of tightening. The numbers will be important in ascertaining the potential options for the Copom at the March meeting with market pricing now suggesting a terminal selic rate above 12.50% following the hawkish minutes released on Tuesday.
  • Food prices are a key driver, partly reflecting unfavorable seasonality, but the rebound in retail gasoline prices in the second half of January should also keep headline inflation high.
    • January IBGE Inflation IPCA M/m, est. 0.55%, prior 0.73%
    • January IBGE Inflation IPCA Y/y, est. 10.39%, prior 10.06%
  • Additionally, December Brazil retail sales will be released:
    • Dec. Retail Sales Y/y, est. -3.2%, prior -4.2%
    • Dec. Retail Sales M/m, est. -0.6%, prior 0.6%

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