Good morning! Today, we bring fresh inflation data. How the government continues to struggle to build a coalition. Good news for banks. And lower inequality in Brazil.
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Breaking: April inflation tops expectations
Brazilian consumer prices jumped 0.61 percent in April, the country’s official statistics agency reported minutes ago. While the index shows that inflation continues to cool — from double digits in the 12 months through July 2022 to 4.18 percent in the 12 months through April — it came above market expectations.
- Market agents surveyed by Refinitiv, an American-British financial data company, were betting on a 0.54 percent monthly inflation rate.
What’s happening. All segments saw price jumps in April, with medicine costs having seen the highest hike. Another worrisome piece of data is the acceleration of food inflation — from 0.05 percent in March to 0.71 percent last month. Food costs disproportionately hit poorer families, representing a larger chunk of poor families’ budgets.
Why it matters. The fresh data comes a week and a half after the Central Bank...