All the fun stuff happens in South America this week. As we noted yesterday, it’s a big one for fresh inflation data.
Coming up: Brazil and Chile both report inflation numbers. We previewed Chile yesterday. Here’s Citi on Brazil:
We forecast January’s CPI inflation at 0.74% month-over-month, in line with the latest consensus forecast, 0.74%, according to central bank’s weekly survey. This result would be a virtual stability from the CPI inflation of January’s first half, 0.76%, but higher than December’s monthly print of 0.63%. Food prices should post a 1.0% increase, exerting, together with transportation costs, the main upward pressures. We forecast January’s exclusion core at 0.60% month-over-month. This indicates that there are additional impacts rather than just food inflation. Over the last 12 months, CPI inflation should remain at 5.9%, the same increase registered previously.