Brazil’s inflation still above target in January

Inflation target

Mid-January inflation in Brazil was recorded above the central bank’s target, increasing the possibility of higher rates over the coming months.

Inflation stood at 4.3%, while the target is 3.75%. Although the preliminary January figure represents a decrease from December’s full-month figure of 4.5%, it is likely to reinforce the tighter policy approach adopted by the central bank earlier this month.

On January 20, the monetary policy committee removed forward guidance justifying a very

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