Brazil inflation slightly below expectations in mid-June
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A street vendor sells fruits in Rio de Janeiro, Brazil April 8, 2022. REUTERS/Ricardo Moraes
BRASILIA, June 25 (Reuters) - Brazil's consumer prices rose slightly less than expected in the month to mid-June, data from statistics agency IBGE showed on Thursday, with food costs driving the increase but losing momentum from the previous month.
Inflation rose 0.41% in the period, below the 0.44% increase forecast in a Reuters poll.
In the 12 months through mid-June, inflation accelerated to 4.80% from 4.64% in the previous period, moving further above the central bank's 3% target, which has a tolerance band of plus or minus 1.5 percentage points.
IBGE said that among the nine groups surveyed, food and beverages (+0.74%) and housing (+0.72%) were the main drivers, accounting for roughly two-thirds of the monthly increase.
Both categories slowed from their May readings.
Earlier on Thursday, the central bank published updated inflation forecasts showing price growth near target by 2028, even as projections worsened significantly through 2027, reflecting the resilience of economic activity.
Last week, policymakers unsettled markets by cutting interest rates for a third consecutive meeting by 25 basis points, to 14.25%, and leaving their next steps open despite a notable deterioration in the inflation outlook through 2027.
(Reporting by Marcela Ayres, Editing by William Maclean)
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