Inflation – No Reason for Optimism

BRAZIL ECONOMICS - Report 09 Nov 2015 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

In October the 12-month IPCA rose to almost 10%, a result not only explained by the substantial adjustment of some key administered prices. There are clear signs that the effects of the weaker exchange rate are starting to appear in consumer prices, and even with the deepening recession and rising unemployment rate the deceleration of service prices has been very modest.

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