Brazil Annual Inflation Slows to 3.81% Before Rate Meeting
Brazil's annual inflation fell to 3.81% in February, the lowest in nearly two years. Data arrives as officials weigh rate cuts amid rising global energy costs.
Annual inflation in Brazil slowed to its lowest level in nearly two years this February, potentially providing room for the central bank to initiate an interest rate easing cycle. Official data from the statistics agency IBGE revealed that the 12-month inflation rate dropped to 3.81%, down from 4.44% in January. While this figure represents the lowest reading since April 2024, it remained slightly above the 3.77% anticipated by economists in a Reuters poll.
On a monthly basis, consumer prices measured by the IPCA index increased by 0.70%, exceeding the forecasted 0.65% rise. This uptick was primarily attributed to rising costs in education and transportation. These figures arrive just days before the central bank's monetary policy committee meets on March 17-18 to discuss the Selic rate, which currently stands at a near two-decade high of 15%.
