Good morning! Today, a look at fresh inflation data. Lula’s new mechanism to boost infrastructure investment. And what’s happening in the auto industry.
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Inflation ends 2023 (just about) on target
Consumer price data from December provides fresh evidence that inflation in Brazil has continued to slow down. The latest inflation report, published just minutes ago, shows that prices rose 4.62 percent over the past year.
👉 Why it matters. Twelve-month inflation has decreased in each of the past three months. Moreover, the country’s flagship consumer price index closed the year within the target range for the first time since 2020.
Yes, but … Some of the report’s details offer a cautionary reminder that it may be too early to declare victory in the fight against rapid price increases. All product segments got more expensive in December, especially food products and transportation.
- Be smart. These two groups account for a big chunk of monthly spending by low-income Brazilian families and thus have a major effect on the economy.
- What they are...