Itaú BBA - Increase in service inflation: noise or signal?

Macro Vision

< Back

Increase in service inflation: noise or signal?

February 15, 2019

In our view, the recent increase in service inflation is just data noise and not a sign that will likely continue to accelerate.


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

• The rise in underlying service inflation in recent months has been notable, especially in a scenario of high spare capacity in the Brazilian economy and with broader inflation indexes contained.

• In our view, this recent increase is just data noise and not a sign that service inflation will likely continue to accelerate. The still-weak labor market will probably limit inflationary pressures.
 

Felipe Salles and Julia Gottlieb
 

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



< Back