Brazil’s inflation shows downside surprises but remains above target

Published 14/08/2025, 18:46
Brazil’s inflation shows downside surprises but remains above target

Investing.com -- Brazil’s inflation has delivered more downside surprises than analysts expected, but still remains above the country’s official target, according to a central bank official on Thursday.

Economic policy director Diogo Guillen stated that inflation continues to be driven by strong demand, which will require contractionary monetary policy for a "very long" period. His comments came in a presentation delivered during a closed-door meeting, which was later published by the central bank.

Guillen noted that the Brazilian labor market has provided substantial support to consumption and income. He also pointed out that services inflation persists above the level that would be consistent with meeting Brazil’s official 3% inflation target.

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