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Mid-Month IPCA Inflation Data Due

BRAZIL
  • National statistics agency IBGE will release mid-month IPCA-15 inflation data at 1200GMT(0700ET). Analysts expect prices to have risen by 0.47% m/m in the first half of January, after a 0.40% increase previously, with the y/y rate printing at 4.63%. Earlier, the weekly FIPE CPI rose by 0.34% (vs. +0.33% previously), while FGV construction costs rose by 0.23% m/m (vs. +0.34% exp. and +0.26% prior).
    • Jan. IBGE Inflation IPCA-15 YoY, est. 4.63%, prior 4.72%
    • Jan. IBGE Inflation IPCA-15 MoM, est. 0.47%, prior 0.40%
  • Meanwhile, Vale and BHP said that they expect to restart negotiations with Brazilian authorities next month over compensation for damages caused in the 2015 tailings dam disaster. Yesterday, a judge ruled that they must pay BRL 47.6bn ($9.7bn) to cover the collective damages, a decision they are allowed to appeal.
  • Separately, Brazil’s low-cost airline Gol filed for bankruptcy protection in the US yesterday. The company secured $950mn of bankruptcy financing from a group of bondholders, according to a statement.

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