LatAm Daily | In Brazil, inflation rebounded more than expected at the beginning of May

May’s IPCA-15 reached 9.6% YoY (0.86% MoM), higher than in April and expectations. This upward surprise shows that our expected deceleration scenario could be slower. The fiscal target has been changed to a deficit of 2.75% of GDP in 2016; the fiscal result will be worse than expected. Mexico’s 1Q16 GDP grew by 0.8%; we expect moderate growth in the coming quarters.

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