Brazil: Inflation hits two-year high in April
Consumer prices rose 0.57% in April over the previous month, a softer gain than March’s 0.75% increase and undershooting expectations of a larger 0.68% rise. That said, April’s result marked the largest jump in prices recorded for that month since 2016. A jump in health and personal costs as the annual adjustment for medicines came into effect fanned price pressures in April. Meanwhile, sharp increases were also recorded in transportation and food and beverages prices, although both eased somewhat from March’s highs.
Inflation rose to 4.9% in April, up from March’s 4.6% and marking the highest reading in over two years. Higher fuel prices have added to price pressures in recent months and the result is above the Bank’s target of 4.25% for the end of 2019. Annual average inflation also edged up from 4.0% in March to 4.2% in April.