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Published on Wednesday, March 9, 2016

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Brazil | Inflation (finally) starts to decline

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Summary

After trending up for a longer-than-expected time, annual inflation declined from 10.71% YoY in January to 10.36% YoY in February. We expect it to continue to lose steam going forward, in line with smaller adjustments in administered prices and the effects of the contraction in domestic demand. Anyway, inflation will likely converge to within the target range only 2017.

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