Inflation & Prices

Brazil Inflation Speeds Up and Hurts Hopes of Another Interest Rate Cut

  • Prices rose 0.46% on month in May, 3.93% on the year
  • Central bank is trying to regain initiative in inflation fight
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Brazil’s annual inflation picked up more than expected in May, snapping a seven-month streak of cooling prices and adding pressure on policymakers to hold interest rates steady at next week’s meeting.

Official data released Tuesday showed prices increased 3.93% in May from a year earlier, above the 3.88% median estimate from analysts in a Bloomberg survey. Inflation stood at 0.46% on the month.