Bank of America reports Brazil's one‑year breakeven inflation fell to 5.39% from 5.65%, narrowing the inflation risk premium.
The gap between breakeven inflation and Focus survey expectations tightened to 1.28 percentage points from 1.60 pp, still elevated.
BoA projects inflation at 3.5% in the monetary policy horizon, up from 3.3% at the last Copom meeting.
El Niño, upcoming Focus survey cutoff, and Aneel‑approved electricity tariff hikes could pressure food and energy inflation through 2027.