Brazil’s IGP-M Inflation MoM for the latest period showed a significant decrease to -0.36% from the previous 0.42%, marking a 0.78 percentage point drop. This shift indicates a notable cooling in inflationary pressures compared to the prior month.
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The actual result of -0.36% was lower than the analyst estimate of -0.23%, suggesting a stronger-than-expected deflationary trend. This unexpected decline may positively influence the stock market, particularly benefiting sectors sensitive to interest rates, such as real estate and consumer goods, due to potential easing in monetary policy expectations. The market impact is likely to be short-term as investors adjust to the new inflation outlook.