Before expecting a Selic rate slightly above 14%, Andrea Damico, chief economist at Armor Capital, now sees more chances of the Central Bank delivering a less intense monetary tightening on the two upcoming meetings.
The smaller pressure on industrial goods resulted in slightly improvements of core prices at the margin, returning to the 13% level observed in April’s IPCA. In other words, the data released today did not confirmed the acceleration registered in May’s IPCA-15. Given that, we review our Selic rate call from 14.25% to 13.75%, explains Andrea.
Inflation decelerates to 0.47% in May, standing at 11.73% YoY
The indicator showed a 4.78% increase this year, surpassing the 3.5% inflation target
Reflecting the energy inflation fall and the deceleration of food prices, consumer inflation advancing 0.47% MoM in May, according to IPCA data by IBGE this Thursday. The result indicates an inflation slowdown in comparison to April, when it rose 1.06% MoM. Despite that, inflation is still under pressure, showing a 11.73% increase in the last twelve months.
Link: https://oglobo.globo.com/economia/noticia/2022/06/inflacao-fica-em-047percent-em-maio.ghtml
