RIO DE JANEIRO, BRAZIL – Annual inflation in Brazil rose to its highest level in over two years in the month to mid-May, government statistics agency IBGE said on Friday, but the monthly rate was lower than expected, suggesting price pressures could be starting to ease.
The IBGE’s broad measure of consumer price inflation rose to 4.93 percent, the highest since February 2017 and up from 4.71 percent in the month to mid-April. The median forecast in a Reuters poll of economists was for a rise to 4.98 percent.
The monthly rate of inflation fell to 0.35 percent from 0.72 percent, lower than the 0.42 percent economists had expected.
On Wednesday, the government raised its 2019 inflation target to 4.1 percent from 3.8 percent.