Brazil’s inflation grows 4.23% YoY in June

Brazil’s inflation rose 4.23 per cent year-on-year, lower than the median analyst estimate of 4.32 per cent. This marks a slight increase from 0.21 per cent inflation recorded in May.

The inflation rate in June was lower than expected, providing some relief for policymakers dealing with rising prices. Despite this, the central bank’s battle against inflation is ongoing.

The Central Bank of Brazil (BCB)  decided to keep the Selic rate unchanged last month, breaking a trend of rate cuts. Inflation remains a concern due to higher food prices and the devaluation of the Brazilian real, leading economists to raise their inflation forecasts above the central bank’s target.

Attribution: Bloomberg