MercoPress. South Atlantic News Agency

Brazil's six-month inflation remains above same period last year and central bank target

Despite a slower tendency in June, half year inflation, 8.84%, is above the 6.17% of the first half of last year

Inflation in Brazil fell in June by 0.35% to an annual rate of 8.84%, but remains almost double the government target, official figures showed. This was an improvement from May, when inflation hit 9.32%, temporarily reversing a three-month falling trend.

 However, inflation at the year's halfway point is now well above the same time in 2015 when it was 6.17%t. And it is far above the target of 4.5%. Food and drink prices for June rose 0.71%, while health costs were up 0.83%, almost half of the previous month's inflation.

Stubbornly high inflation is one of the challenges facing interim president Michel Temer and new central bank governor Ilan Goldfajn, who are battling to restore confidence in the sputtering economy. Goldfajn has said reining in prices will be his top priority.

Brazilian policy makers face the tricky challenge of both rising prices and a shrinking economy, which contracted 3.8% last year -- the worst performance in 25 years.

The recession has been exacerbated by political uncertainty in Brasilia, where suspended president Dilma Rousseff is facing an impeachment trial on charges of fiddling with the government's accounts, and a massive corruption scandal centered on state oil giant Petrobras that has shaken the political establishment.