Reported about 1 year ago
Brazil experienced a higher-than-expected annual inflation in May, ending a streak of decreasing prices and raising pressure to maintain interest rates at next week's meeting. With prices rising 3.93% year-on-year, above estimates, the central bank is anticipated to halt its easing cycle to combat inflationary pressures. Concerns about inflation tolerance under President Luiz Inacio Lula da Silva have emerged. Factors, including floods in Rio Grande do Sul, were cited as contributing to the inflation spike, suggesting policy uncertainties and potential long-term high borrowing costs.
Source: YAHOO