Consumer inflation in Brazil shows slowdown monthly last month


(MENAFN) According to data released on Wednesday by the Brazilian Institute of Geography and Statistics (IBGE), Brazil's consumer inflation exhibited a slowdown on a monthly basis in June. The Consumer Price Index (CPI) increased by 0.21 percent during the month, marking a deceleration from the 0.46 percent rise recorded in the previous month. This figure also came in below market expectations, which had anticipated a 0.32 percent increase.

The IBGE detailed that within specific categories, the health and personal care group saw the most significant increase, rising by 0.54 percent. Meanwhile, food and beverages prices also rose, albeit more modestly, increasing by 0.44 percent. In contrast, transportation costs decreased by 0.19 percent during the same period.

On an annual basis, however, consumer prices in Brazil showed a more accelerated trend, with the CPI rising by 4.23 percent in June compared to the same month last year. This represented an uptick from the 3.93 percent annual increase recorded in May but still fell short of market expectations, which had projected a higher year-on-year gain of 4.35 percent.

Brazil's central bank has been actively managing monetary policy to address economic conditions. Following a series of rate cuts, the benchmark interest rate was reduced to 10.50 percent on May 8, marking the lowest level since February 2022. In its subsequent meeting on June 19, the Banco Central do Brasil opted to maintain the benchmark rate unchanged at 10.50 percent. The central bank's upcoming two-day meeting, scheduled to conclude on July 31, will continue to be closely watched for any further adjustments in response to inflationary pressures and economic developments.

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