Brazil: It's Too Soon To Samba In The Streets

So far, so good. Brazil's latest economic-stabilization plan, launched in February, has cut monthly inflation from 50% in June to less than 7% in July, and analysts expect August inflation to drop to 2% (chart). But with a presidential election and wage hikes looming, and with key elements of the plan still missing, the outlook for Latin America's most promising underachiever remains as cloudy as ever.

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