Veja: 17/03/2023
Despite the still significant pressure on services inflation in Brazil, economists agree that the economy is already in a disinflationary process. Chief economist at Armor Capital, Andrea Damico, affirms that this process is course, especially considering the core inflation deceleration in the past three months, from 9.37% to 8.73% in January and to 8.44% in February. “Brazilian inflation, including services prices, has decelerated. This is the opposite of the United States situation, where services inflation is still high. According to her, services prices have lost strength since the second half of last year, which implies the core prices deceleration. However, this process may be slower than expected due to the adjustment of minimum wage in real terms and the possibility of expanding social programs like Bolsa Família.
Smaller inflation in Brazil? Data show that reality is more complex than that
Brazilian inflation is smaller than in the US and Europe but shows higher core inflation, which is considered a more accurate measure, than those regions,
Last year, Brazilian inflation was lower than observed in the United States and the Euro Zone for the first time. This fact increased pressure on the Brazilian Central Bank to reduce the interest rates. However, a deeper analysis shows that the core inflation, which excludes items such as food and fuels, has been higher than in those other countries.
