Brazil: Inflation falls to a 21-month low in June
July 6, 2012
In June, consumer prices increased 0.08% over the previous month, which was below both the 0.36% rise recorded in May and market expectations of a 0.12% price increase. The result mainly reflected an increase in prices for food. Despite the monthly price rise, annual headline inflation eased for the ninth consecutive month, inching down from 5.0% in May to 4.9% in June, and thus settling within the Central Bank's target of 4.5% with a tolerance margin of +/- 2.0 percentage points. In fact, the reading represents the lowest inflation rate since September 2010. The Central Bank expects inflation to decline to 4.4% by the end of 2012 and to accelerate to 5.2% by the end of 2013.