Itaú BBA - IPCA climbs 0.25% in February and 4.01% year-over-year

Macro Brazil

< Back

IPCA climbs 0.25% in February and 4.01% year-over-year

March 11, 2020

Core inflation measures remain at comfortable levels.


For the version with all charts and tables, please open the attached pdf file

 

 The consumer price index IPCA climbed 0.25% in February, printing above our forecast (0.17%) and the median of market expectations (0.15%). The increase in personal care items showed a noteworthy difference vs. our call (+2.1% after -2.1% in the previous month).

 Core inflation measures remain at comfortable levels. Underlying service inflation advanced 0.18% in February and the year-over-year change remained at 3.4%. The year-over-year average of core inflation measures has been hovering somewhat below 3%.   

 According to our forecasts, the IPCA will go up by 0.12% in March, 0.33% in April and 0.17% in May. For the time being, we expect the IPCA to rise 3.3% in 2020.

 

Julia Passabom


For the version with all charts and tables, please open the attached pdf file



< Back