Brasil Taxa De Inflação

The annual inflation rate in Brazil fell for a sixth straight month to 3.93% in March of 2024, the lowest in nine months, dropping from 4.5% in the previous month and firmly below market estimates of 4.01%. Consequently, price growth fell within the Brazilian central bank’s upper tolerance limit of 4.5%, in line with the backdrop required for the BCB to extend its rate-cutting momentum. Prices slowed for transportation 3.7% vs 6.24% in February), as base effects triggered a sharp moderation in fuel inflation (2.66% vs 9.67%), in addition to decelerating housing and utilities (4% vs 4.4% in February). On the other hand, the CPI accelerated for food and beverages (3.1% vs 2.62%). From the previous month, the Brazilian CPI edged higher by 0.16%, the smallest increase in eight months.