Brazil: Inflation stabilizes in May
June 8, 2016
Consumer prices in May increased 0.78% over the previous month. The print was above the 0.61% increase recorded in April and greater than market analysts’ expectations. The acceleration was mainly driven by rising prices for housing.
Inflation in April stabilized at March’s 9.3%, which had marked the lowest level since June 2015. The easing in price pressures comes after a number of hikes in the Central Bank’s SELIC rate in 2015 and a backdrop of recession. In addition, the effect of a number of price adjustments is beginning to fade. Despite the fall, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.