Valor Econômico (interview): 06/03/2023
Brazil usually shows much higher core inflation than developed countries, partially due to an also higher inflation target, according to Andréa Damico, partner and chief economist at Armor Capital. “Our target is currently 3%, but it was 4.5% for a long time, even during PT Party administrations. In the US, the target has been 2% since that period. Brazilian core inflation is much higher and is still above the target”.
Damico also points out that the 12-month core inflation data reflects a strong past inflation trend. Given that, she prefers to analyze more recent information (3-month annualized average). Considering this measure, our trend is slightly better than in the US and Europe, although it is still higher.
