Today, the country announced a drop in wholesale prices, boosting both retailers and banks, report Alexander Ragir and Paulo Winterstein for Bloomberg. Citigroup strategists say the economy is growing and inflation expectations have peaked.

Is it so? Could be, but we recommend you wait until Brazil moves back above its trend line to be sure instead of trying to make predictions.

iShares MSCI Brazil Index (EWZ) will be in a good position if inflation calms down, and the recent blend of yen to real creates a cash surplus for the economy.

EWZ is down 8.7% year-to-date, while BZF is up 4.7% since its May 23 inception.