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Published on Friday, February 5, 2016 | Updated on Friday, February 5, 2016

Brazil | Inflation surprises strongly to the upside

Inflation reached 10.71% YoY / 1.26% MoM in January, significantly higher than forecast, mainly due to food and regulated (transport) prices. Therefore, annual inflation will only start to moderate from February -rather than from January- onwards, and the most likely is that the convergence to within the 2.5%-6.5% target range will only occur at the beginning of 2017.

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