Reported 4 months ago
Brazil's consumer prices rose less than expected in early May, with annual inflation easing to 3.7% from a year earlier, slightly below analysts' forecasts. This data is seen as giving policymakers room to further cut borrowing costs in June before pausing rate reductions. Economists and investors have become more cautious about Brazil's inflation outlook, with forecasts for 2024, 2025, and 2026 exceeding the 3% target. Despite concerns, the report showed easing seasonal food price shocks and better-than-feared core inflation, leading to a more positive market sentiment regarding Brazil's inflation dynamics and potential rate cuts by the central bank.
Source: YAHOO