Brazilian consumer prices aren’t climbing as quickly as they once were. The IPCA benchmark index rose by 0.23 percent in May — below market expectations for the month and a steep drop from April inflation (0.61 percent).
In the 12 months to May, prices climbed by 3.94 percent, a rate that has decelerated in each of the past 11 months.
The latest data strengthens analysts’ belief that the Central Bank will probably start cutting the country’s benchmark interest rate, the Selic, from its current levels of 13.75 percent, by the third quarter of this year.
“The bank will not make a policy about-face in June,” economist André Perfeito told followers in his Telegram channel. “But I expect to see [the bank’s policy meeting minutes] bringing clear signals that monetary easing...
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