Rio de Janeiro, Brazil (4E) – Monthly consumer prices in Brazil grew at a slower pace in May compared with the previous month, as the country continues to experience the impact in food prices by one of the worst droughts in decades.
The IPCA — Brazil’s consumer-price index – climbed 0.46 percent compared with a gain of 0.67 percent in April, according to IBGE, or the Brazilian Geographic and Statistics Institute, said Friday.
The monthly inflation index was higher than analysts’ average estimate for an increase of 0.38 percent in May, according to 14 economists surveyed by the Wall Street Journal. The monthly inflation in May was the lowest level since last September, when it rose 0.35 percent.
Still, the annual inflation edged higher. The rolling 12-month index advanced through May, climbing 6.37 percent compared with 6.28 percent posted through April, according to IBGE.
A lower monthly inflation level could prompt the central bank to stop its year-long cycle of interest-rate hikes. The central bank maintained its benchmark Selic rate at 11 percent at the end of May.