Seen as a reliable predictor of Brazil’s official inflation rate, the IPCA-15 price index came in at 0.44 percent in May, according to the Brazilian Institute of Geography and Statistics. It was the highest rate for the month since 2016, when it hit 0.86 percent.
However, the index fell when compared to April levels (0.60 percent) and came in below analysts’ expectations. In a 12-month comparison, the figure rose from 6.17 percent in April to 7.27 percent in May.
Just one day before, markets raised 2021 inflation projections for the seventh consecutive week, up to 5.24 percent. The figure is just below the 5.25 percent upper limit of the government’s target band. Twelve-month inflation reached 6.7 percent in April.