Brazil: Inflation eases to 10-month low
May 9, 2016
Consumer prices in April increased 0.61% over the previous month. The print was above the 0.43% increase recorded in March and greater than market analysts’ expectations. The acceleration was mainly driven by rising prices for health and personal care.
Inflation in March inched down to 9.3% from March’s 9.4%, which marked the lowest level since June 2015. The easing in price pressures comes after a number of hikes in the Central Bank’s SELIC rate in 2015 and a backdrop of recession. In addition, the effect of a number of price adjustments is beginning to fade. Despite the fall, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.