In brief

70% in September, above expectations.

47%.

What we know

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  1. Verified fact · material

    The IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗-15 rose 0.70% in September, after a 0.40% drop in August, above the median market forecast.

    Measures current inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗.

  2. Verified fact · material

    Over 12 months, the IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗-15 reached 4.47%, from 4.24% the previous month.

    Shows the annual trend.

  3. Verified fact

    According to Agência Brasil, electricity rose 7.42% with the end of the Itaipu bonus and, without it, the index would have been 0.41%.

    Identifies the main driver.

    Sources[02]
  4. Verified fact

    According to Agência Brasil, airfares rose 9.82% and food rose 0.40%.

    Details other groups.

    Sources[02]

Transmission to assets

Market read-through

The surprise concentrated in electricity tends to be partly reversed by October green tariff flag, but keeps the short end of the curve under pressure until the full IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ on October 9 and the next Copom meeting.

Portfolio impact

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Juros futuros curtosnegative

Above-expected inflationInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ reduces room for Selic cuts.

Rise concentrated in a one-off effect.

What would change the view: Full IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ confirming the pressure.

rates45% confidence

Direction is an explanatory hypothesis, not a forecast or recommendation.

Next signals

What to watch

  • September IPCAInflationMacroChange in the price level, tracked in Brazil primarily through the IPCA index.Open in the Market Map ↗ on October 9
  • Effect of the October green tariff flag
  • Focus survey expectations

Limits of the reporting

What remains uncertain

  • The exact median market forecast varies across surveys.

Full sources

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