Inflation & Prices

Brazil Inflation Slowdown Falls Short Ahead of Key Rate Hike

  • Prices gained 4.5% on year in early January; est. 4.36%
  • Central bank set to deliver second straight 100bps rate hike

Power lines in the South Zone of Rio de Janeiro.

Photographer: Pedro Prado/Bloomberg
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Brazil’s annual inflation slowed less than expected in early January despite a drop in energy costs, highlighting the challenges facing policymakers as they prepare to raise the interest rate again next week.

Official data released Friday showed consumer prices rose 4.5% from a year earlier, above the 4.36% median forecast in a Bloomberg survey of economists. On the month, they increased 0.11%.