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The El Niño phenomenon, which is forecast for the end of the year, will pressure inflation. However, the effects on the economy will depend on the intensity of the event: a weak El Niño will have little impact, while a strong one will have an impact on inflation.
The inflation figures for February were good. Monthly inflation stood at 0.57% with annual inflation at 3.01%, the lowest since August 2014. Analysts and economists were expecting a higher monthly figure and this meant that the good news provided even greater optimism.
