IPCA: Inflation Accelerates

BRAZIL ECONOMICS - Report 09 May 2014 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

In March the IPCA grew by 0.92%, in comparison with the IPCA-15 of 0.73%, raising the 12-month figure from 5.68% to 6.15% (Graph 1). With this result, the probability has grown that inflation will exceed the upper bound of the target interval at some point during the second or third quarters this year, and that inflation for the year will be higher than this limit (6.5%), even with the suppression of administered prices.

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