Brazil’s annual consumer inflation slows to 3.94% in May

Brazil’s annual consumer inflation rate slowed down in May, according to official data released on Wednesday.

The consumer price index annually rose 3.94% in May, slowing down from the year-on-year gain of 4.18% recorded in April.

The figure also managed to come below the market estimate of a 4.04% increase.

On a monthly basis, the consumer price index rose by 0.23% in May, the Brazilian Institute of Geography and Statistics (IBGE) said in a statement.

The index also showed a slowdown from a 0.61% gain in April, and it came lower than the market expectation of a 0.33% monthly increase.

Brazil’s central bank, the Banco Central Do Brasil, last made a rate hike of 50 basis points on Aug. 3, 2022, carrying the interest rate to 13.75% — the highest since early 2017.