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Brazil’s Inflation Hits Highest Since 2003 as Food Prices Soar

  • Brazil, Chile, Colombia, Peru saw above-forecast price rises
  • Mexico’s closely-watched core CPI sped up more than expected
Workers listen to speakers during a protest outside of the Central Bank of Brazil in Brasilia, Brazil, on Wednesday, May 4, 2022. Inflation is so rampant in Brazil, having surpassed 12% a year in early April, that workers at the institution in charge of taming prices are themselves on strike, demanding wage raises to recover lost purchasing power.
Workers listen to speakers during a protest outside of the Central Bank of Brazil in Brasilia, Brazil, on Wednesday, May 4, 2022. Inflation is so rampant in Brazil, having surpassed 12% a year in early April, that workers at the institution in charge of taming prices are themselves on strike, demanding wage raises to recover lost purchasing power.Photographer: Andressa Anholete/Bloomberg
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Latin American central banks will likely extend their monetary tightening campaigns beyond what was originally expected after inflation surged past forecasts in April, with steep increases in food and fuel costs stinging policy makers.

Brazil’s consumer prices rose 12.13% from a year prior according to data released Wednesday, the fastest pace in nearly two decades and also above the 12.06% median estimate in a Bloomberg survey. Headline inflation also topped forecasts in Peru, Colombia and Chile in the same month, as did the closely-watched core index in Mexico.