Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
After hitting 7.14% in January due to the rise in the administered prices of electricity and energy, Brazilian inflation rose further in February to 7.70% yoy primarily on account of the continued rise in transport prices (8.1% yoy versus 5.7% in January) and an acceleration in housing (11.3% yoy) and food (9.0% yoy) inflation.
However, the key factor behind monthly inflation in February was the seasonal rise in education prices (5.9% mom), which contributed about onefifth (0.26pp) of total inflation (1.2% mom).
Societe Generale notes its forecasts as follows...
- We expect IPCA-15 inflation to accelerate to 7.68% yoy (implying virtually no change in inflation against the IPCA full-month series).
- There is a considerable probability that inflation in 2015 could come in higher than our current forecast of 7%. Moreover, it's likely that inflation stays above 7% throughout the year and subsides only in 2016.
- Our forecast for moderation in 2016 is based on the fading effect of recent changes in energy prices, continued low growth and monetary policy tightening.
- However, there remains considerable upside risk to 2016 inflation if the labour market does not deteriorate enough in response to low growth, leading to second-order impacts on prices in 2016.
- Other structural issues - including depreciation of the real and the low savings rate - will also maintain upward pressure on inflation.
