Brazil Central Bank Pledges to Stop Core Inflation Contagion
Brazil’s central bank is closely monitoring if a recent spike in commodity prices will continue to affect core inflation, and particularly expectations for 2022, as it calibrates monetary policy, according to its President Roberto Campos Neto.
The bank delivered an outsized rate hike last month and promised another in May as it realized that what it deems as temporary price shocks were having a more lasting impact on inflation, even when excluding more volatile items such as food and energy.
By Andrew Rosati and Shery Ahn