Key facts
- Brazil's mid-June inflation rate was 0.41%, below the 0.44% forecast.
- Annual inflation reached 4.80% in the 12 months through mid-June.
- Food and beverages, and housing costs were the primary drivers of the monthly price increase.
- The central bank forecasts inflation to be near its 3% target by the end of 2028.
- Economic growth projections for Brazil were raised to 2.0% for the current year.
- Brazil's central bank recently cut its benchmark interest rate by 25 basis points to 14.25%.
Brazil's consumer prices rose 0.41% in the month to mid-June, a slight deceleration from the 0.44% forecast, with food and housing costs being the primary drivers. Annual inflation accelerated to 4.80% in the 12 months through mid-June, moving further above the central bank's 3% target. Despite near-term inflationary pressures and a recent 25 basis point interest rate cut to 14.25%, the central bank's updated monetary policy report projects inflation to be near its target by the end of 2028. The bank also revised its economic growth projection for the year upward to 2.0%, citing strong agricultural and commodity production, as well as fiscal and credit stimulus measures.