Inflation & Prices

Brazil Inflation Overshoots Forecasts Just as Key Rate Starts to Fall

  • Consumer prices rise 0.12% on month, 3.99% on year in July
  • Central bank cut rates by 50 basis points to 13.25% on Aug. 2

A worker pulls a cart of goods in Rio de Janeiro, Brazil.

Photographer: Dado Galdieri/Bloomberg
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Brazil’s annual inflation accelerated for the first time in over a year, topping economist expectations, as the central bank signals plans to keep cutting interest rates by 50 basis points.

Consumer prices rose 3.99% in July from a year earlier, more than the 3.94% median estimate from analysts in a Bloomberg survey. From the previous month, prices rose 0.12%, the national statistics institute reported on Friday.