BRASILIA, June 9 - Annual inflation in Brazil fell 8% for the first time in more than four years in May, figures on Wednesday showed a figure higher than economists had forecast, which will likely confirm another powerful interest rate hike from the central bank next week.
The monthly rate of inflation was also the highest in May since 1996, the IBGE Statistics Agency said, adding that all nine categories surveyed showed rising prices in the month.
The median rate of consumer inflation jumped in April to 8.1% from 6.8%, IBGE said, more than the annual forecast in a Reuters report of economists for 7.9% and the highest since September 2016.
The 3.75% year-end target of the central bank is 1.5 percentage points margin of error on either side. This shows inflation - well above the 5.25% upper limit of this range.
The monthly rate rose in April from 0.3%, economists in the Reuters poll said, again higher than the 0.7% rise predicted by IBGE.
All nine categories surveyed by IBGE rose in May with housing costs rising 1.8%, household goods up 1.3% and transport costs, which include fuel, increased 1.2%, IBGE said.
Roberto Campos Neto told the central bank on Tuesday that policymakers are 100% committed to meeting their inflation goals and that they still believe much of the temporary rise in the US is due to recent shocks.
The target of the bank 2022 is 3.50% again with a 1.5 percentage point margin of error on either side.
The central bank is widely expected to increase the interest rate by 4.25% next week by increasing the borrowing cost by 75 basis points. What are some of the best quotes from a quote?