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Brazil Inflation May 2019

Brazil: Inflation eases from two-year high in May

Consumer prices rose 0.13% in May over the previous month, a softer gain than April’s 0.57% increase and undershooting expectations of a larger 0.20% rise. Notably, May’s result marked the smallest jump in prices recorded for that month since 2006. Falling prices for food and beverages chiefly drove the lower print, along with a smaller rise in transportation prices.

Inflation fell to 4.7% in May from April’s over two-year of 4.9%. The result is above the Central Bank’s target of 4.25% for the end of 2019. Annual average inflation, however, edged up from 4.2% in April to 4.3% in May.

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