Brazil's wholesale-heavy price gauge flipped from a decline to a 1.57% monthly gain in September, just weeks after the central bank's rate cut, and traders are already rethinking the easing path. Oil-driven currency pressure also hit India and Indonesia this week.
Fundo Versa’s seasonally adjusted PNAD reading slipped to 5.4% even as headline unemployment held at a historically tight 5.3%, leaving little slack against a still-high Selic. Source
Banco Central do Brasil (BCB) cut the Selic rate in mid-September on the premise that disinflation was durable enough to start unwinding one of the world's most restrictive policy stances. Three weeks later, its own leading price gauge said otherwise.
