Brazil: Inflation ticks up in May
Consumer prices rose 0.40% in May over the previous month. The result was above April’s 0.22% rise and market expectations of a softer 0.30% increase. The uptick was driven by higher prices for housing, transport, and food and beverages.
Inflation edged up to 2.9% in May from 2.8% in April. Inflationary pressures remained subdued and inflation came in just below the lower threshold of the Central Bank’s target range of 4.5% plus or minus 1.5 percentage points. Annual average inflation was stable at an over-decade low of 2.8% in May. Inflation should accelerate in June as a result of a trucker strike at the end of May where blocked highways led to shortages and supply constraints, which will have likely fueled rising price pressures.