Brazilian consumer prices rose at the fastest pace in nine months in January on higher transport, food and drink costs, reinforcing bets the central bank will miss its year-end inflation target as the economy rebounds.
Brazilian interest-rate forecasts by economists and traders are diverging by the most this year. Recent history shows traders are more accurate predictors of the country’s monetary policy.
Brazilian central bank President Alexandre Tombini missed the first milepost in his plan to bring down inflation and cut interest rates at the same time.
Brazil’s inflation quickened to the fastest pace in five months in September as food prices pushed the annual rate above the government’s target.
"There is a broad risk-off sentiment in financial markets, and the real is being affected by that."
- Solange Srour on Jan 14, 2015