Inflation figures from Latin America’s biggest economy show that domestic consumer prices have slightly increased, albeit less than originally anticipated, according to the Brazilian Institute of Geography and Statistics (IBGE)

Brazilian prices edged up by 0.21 per cent from mid-March, falling short of the 0.29 per cent growth forecasted.

This brought the inflation rate for the previous 12 months to 3.77 per cent, marking a slowdown from 4.14 per cent in the preceding 12 months and also below the expected 3.86 per cent rise. 

This reading marked the first time since July of the previous year that the figure landed below four per cent. With the recent devaluation of the Brazilian real and a more cautious stance from the monetary authority committee, analysts suggest a probable scenario of a 25 basis-point interest rate cut at the May meeting. 

Within sectors, the food and beverages group experienced the most significant price increase during the period, growing by 0.61 per cent, contributing 0.13 percentage points to the total rise. Conversely, the transportation group saw disinflation, particularly as airfare prices dropped by 12.2 per cent.