Inflation & Prices

Brazil Annual Inflation Slowdown Underwhelms as Interest Rate Hikes Loom

  • Prices rose 4.24% on year in August, fell 0.02% on month
  • Traders see a central bank rate hike at next week’s meeting

A shopper at a Big Box supermarket in Brasilia, Brazil.

Photographer: Gustavo Minas/Bloomberg
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Brazil’s annual inflation eased roughly in line with expectations in August, a drop that’s unlikely to relieve the pressure on central bankers to lift interest rates when they gather next week.

Official data released Tuesday showed prices rose 4.24% from a year earlier, just below the 4.27% median estimate of analysts surveyed by Bloomberg. On the month, they fell 0.02%.