Inflation jumps above 7%

Driven by a sharp increase in administered prices, inflation jumped to 7.14% YoY in January, from 6.41% YoY in December. The 0.73 p.p. increase in annual inflation is the largest in more than ten years. In spite of the impact of the ongoing deceleration in economic activity, inflation should continue under pressure ahead. We expect it to peak around 7.5% YoY in February and then to remain close to 7.0% YoY for a good time.

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