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Up against inflation, Brazil’s Central Bank to bring back the pain

In a decision that surprised no one, the Brazilian Central Bank maintained the country’s Selic benchmark interest rate at 13.75 percent in its last policy meeting before the country’s presidential runoff election.

The monetary authority reaffirmed its long-term battle against inflation, which closed 2021 in the double digits and is set to exceed the government’s target this year, according to the Central Bank itself. Prices have recently receded, but mainly thanks to government intervention to hold fuel prices down.

Yesterday, however, the IPCA-15 mid-month inflation index raised red flags after snapping a two-month deflationary streak — with food prices rising…

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