depreciation

Amid the growing uncertainty of the global economic scenario, stemming from the potential escalation of tariff increases initiated by the US, the main central banks have launched a crystal-clear message this week: monetary policies are entering a new phase.

Consumer prices increased 1.87% (mom) in April, even higher than our above consensus estimate (1.7% vs. 1.5%).Annual consumer inflation jumped to 10.85% from 10.23% with a more rapid pick-up in core prices than our expectation. We maintain our year-end inflation estimate at 10.5%, though exchange rate volatility and loose policies could pose upside risks.