Brazil’s May inflation seen at eight-month low, opening window for rate cuts
Brazilian inflation probably declined to an eight-month low in May versus April, opening a much anticipated window for interest rate cuts in the second-half of the year, a Reuters poll of economists predicted.
On a 12-month basis, consumer price data due Wednesday are expected to show the smallest rise in more than two years, adding to evidence for the potential start of an easing cycle from a reticent central bank.
The IPCA inflation index likely increased 0.33% on the month in May, its softest reading since September 2022, and 4.04% in the 12-month gauge, the lowest since October 2020, according to median estimates of 20 analysts polled from May 31 to June 5.
By Gabriel Burin via Reuters