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Week ahead: Mexico and Brazil Mid-Month Inflation Data

LATAM
  • In the coming week, there are no central bank meetings scheduled in LatAm. On the data front, attention will be on mid-January CPI inflation prints for Mexico (Weds) and Brazil (Fri), which are expected to show a further moderation of price pressures, while Mexico will also release November economic activity data (Weds).
    • On Monday, Colombia trade balance data for November will be published, expected to show a deficit of $695mn, compared with -$960mn previously and -$1.1bn this time last year. In Brazil, the latest weekly economist survey will also be released.
    • Argentina will publish November economic activity data on Tuesday, which is set to remain weak.
    • On Wednesday, Mexico CPI inflation is expected to continue falling slowly to 4.77% y/y in the first half of January, from 4.86%. Accelerating non-core inflation should partially offset decelerating core price pressures. Meanwhile, Mexico economic activity is expected to slow to 2.9% y/y in November, from 4.24%, which would be the slowest since April.
    • On Friday, Brazil IPCA-15 CPI inflation is set to moderate to 4.64% y/y in the first half of January, from 4.72%. Additionally, the results of the latest BCCh economist survey in Chile will be monitored ahead of the Jan 31 rate decision. Mexico December trade data will also be published, with consensus for the surplus to rise to $2.18bn, from $629.9mn.

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