Brazil’s inflation slows in June

Brazil’s consumer prices rose less than anticipated in the month leading up to mid-June, according to data released by the statistics agency IBGE on Wednesday.

Inflation in Latin America’s largest economy, as measured by the IPCA-15 index, was 0.39 per cent during this period, down from 0.44 per cent the previous month. Economists surveyed by Reuters had forecast a monthly consumer price increase of 0.45 per cent.

Last week, Brazil’s central bank decided unanimously to pause its easing cycle, maintaining its benchmark interest rate at 10.50 per cent. This decision was influenced by higher inflation expectations, fiscal challenges, and the potential for future rate cuts by the U.S. Federal Reserve.

IBGE reported that Brazil’s annual inflation reached 4.06 per cent in the first half of June, slightly below the expected 4.12 per cent.

Attribution: Reuters.