Brazil: Inflation falls to lowest level since July 2010
May 10, 2017
Brazilian consumer prices in April increased 0.14% over the previous month, which was below March’s 0.25% rise. The slowdown came largely due to a cut in electricity rates, which lowered the housing category of the index.
Inflation continued to drop in April, falling to an over six-year low of 4.1% (March: 4.6%). The result was in line with market expectations. The sharp fall will give the Central Bank space to continue with its easing cycle to support an economic recovery. Inflation is within the Central Bank’s target band of 2.5%-6.5%.