Brazil's Guedes says 'inflation beast is out of the box'
BRASILIA, Jan 21 (Reuters) - Brazilian Economy Minister Paulo Guedes said on Friday "the inflation beast is out of the box" and will be a problem for the Western world but stressed Brazil was moving faster to battle it with aggressive monetary tightening.
Addressing an online seminar on Friday hosted by the Davos World Economic Forum, Guedes said Brazil ended 2021 with a small primary surplus and that the country has fiscal and monetary space to react if economic conditions deteriorate.
"My fear is that the beast is out of the box. I don't think inflation will be transitory at all...And I think inflation will be a problem, a real problem, very soon for the Western world," Guedes said.
Reporting by Marcela Ayres Editing by Mark Heinrich
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