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Investing.com -- Brazil’s inflation rate fell to 5.0% year-on-year in mid-October, down from 5.3% in mid-September, according to the latest consumer price data.
Consumer prices increased by 0.2% month-on-month, coming in slightly below market expectations. The modest decline in the headline inflation rate was driven by decreases across most IPCA components.
Food and beverages inflation saw a particularly sharp drop to 6.3% year-on-year. Housing and personal expenses inflation also declined significantly. In contrast, transport inflation increased notably during this period.
Despite this small reduction in inflation, Brazil’s central bank is expected to maintain its hawkish monetary policy stance. The current interest rate stands at 15.00%, and while an easing cycle appears to be approaching, analysts believe it may take several more policy meetings before the central bank begins cutting rates.
The inflation data suggests Brazil’s economy continues to face price pressures, though they have moderated slightly from previous months.
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