Key facts
- Brazil's IPCA-15 inflation rose to 4.64% year-over-year in May.
- This figure is above the 4.55% consensus estimate.
- The May inflation rate also exceeded the 4.50% upper limit of the Central Bank of Brazil's target band.
- Monthly inflation increased by 0.62% in May, surpassing the consensus of 0.57%.
- Higher food prices contributed to the inflation increase, while falling transport prices due to subsidies provided some offset.
Brazil's benchmark inflation index, the IPCA-15, recorded a year-over-year increase to 4.64% in May. This figure surpassed both the consensus forecast of 4.55% and the upper limit of the Central Bank of Brazil's (BCB) target band, which stands at 4.50%. On a monthly basis, the IPCA-15 rose by 0.62% in May, also exceeding the consensus expectation of a 0.57% increase. The upward pressure on inflation was primarily driven by higher food prices, although this was partially offset by a decrease in transport prices, influenced by government subsidies. The previous month's inflation rate in April was 4.37% year-over-year.