Frosts may worsen inflation in Brazil even more – XP

Given the new frost wave and higher prices of animal proteins, the scenario with a 7.3% hike in food prices consumed at home measured by the IPCA has upside risk, XP said.

RIO DE JANEIRO, BRAZIL - XP calculated that the frosts this week may impact inflation this year by 0.1 percentage point, with the potential of the IPCA hike exceeding 7.0% in 2021, according to a note issued on Thursday (29).

XP, which estimates inflation in 2021 at 6.7%, had already raised its projections for the rise in food prices at home for July due to frosts this month in several cities in the South and Southeast regions.

Given the new frost wave and higher prices of animal proteins, the scenario with a 7.3% hike in food prices . . .

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