Here is more confirmation (please see our post yesterday). Official inflation figures for Q1 have just been released: +2.06% (in 3 months). This is the highest level since 2003.
Make no mistake, my opinion is that Brazilian Interest rates are going higher. With iron ore prices skyrocketing (got any VALE?), the situation can quickly escalate out of control.
The currency ETF is BZF (click for alerts)