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Published on Monday, June 6, 2011

Brazil Economic Watch: ”Beginning of the low inflation season”

Inflation dropped to 0.47%m/m in May from 0.77%m/m in April due to seasonal factors and lower fuel prices. We expect inflation to be in 0.1%m/m - 0.3%m/m range in the next few months, which should take some pressure off the Central Bank.

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