Brazil IBGE inflation in December is expected by market consensus to be 1.13 month on month, while on yoy basis it is expected to be 10.65%.

This suggests that the BRL depreciation and structural factors might be primary factors in leading overall strength of inflation at this moment apart from continution of some adjustments to the regulated prices, while food and transport continue to drive inflation in short term.

"Inflation moderation should begin in January 2016 when the effect of higher regulated prices start to ebb. We expect a nearly 1% point decline in inflation in January 2016", says Societe Generale.