LatinNews Daily - 13 January 2025

*Brazil’s national statistics institute (Ibge) has posted a monthly inflation rate of 0.52% in December and annual inflation rate of 4.83% for 2024. The monthly figure marked an acceleration from the 0.39% monthly inflation registered in November but was down from 0.56% registered in December 2023. Of the nine categories of products and services measured, eight registered a monthly rise in prices in December, with the highest inflation registered in the food and drinks category (+1.18%) and clothing (+1.14%). The annual rate is above the upper limit of the 2024 inflation target range of 3.0% +/-1.5 set by the central bank (BCB). Since the annual target range was breached, the BCB president Gabriel Galípolo was obliged to write an open letter addressed to the government explaining the main drivers of inflation last year. The main factors detailed in his letter included high economic activity, currency depreciation, and unfavourable climate conditions. Galípolo reiterated the BCB’s plans to pursue a tight monetary policy in the coming months. The BCB projects that annual inflation will hover around 5.0% for the first three quarters of this year but will close the year at 4.5%.