Brazil: Inflation slides in May
Consumer prices rose a seasonally-adjusted 0.47% in May over the previous month, moderating from April’s 1.06% increase. May’s result marked the weakest reading since April 2021. The slowdown was primarily driven by softer growth in prices for transportation. In addition, price pressures for food and beverages eased. Moreover, prices for health and personal care grew at a more subdued pace.
Inflation dropped to 11.7% in May, following April’s 12.1%. However, inflation remained well above the Central Bank’s 3.5% target. Meanwhile, the trend pointed up, with annual average inflation coming in at 10.4% in May (April: 10.1%).