Brazil: Inflation falls to over two-year low in March
Inflation eased to 4.7% in March, following February’s 5.6%. March’s result marked the weakest inflation rate since January 2021, but still remained above the Central Bank’s 3.5% target. Looking at the details of the release, the moderation was chiefly due to housing prices dropping in March compared to the previous month, while price pressures for food and beverages eased. Moreover, prices for clothing grew at a more subdued pace.
Accordingly, the trend pointed down, with annual average inflation coming in at 7.9% in March (February: 8.5%).
Finally, consumer prices rose a seasonally adjusted 0.71% over the previous month in March, a smaller increase than February’s 0.84% rise.