Brazil's inflation eased more-than-expected in August as prices fell from the previous month, preliminary data from the statistical office IBGE showed Thursday. The consumer price index, IPCA, rose 4.19% year-on-year following a 4.48% in July. Economists had forecast a 4.29% inflation rate.
Brazil's inflation rate unexpectedly slowed in April and kept far below the official target, suggesting a recent period of currency weakness is unlikely to keep the central bank from cutting interest rates next week.
Brazil's monthly inflation rate slowed dramatically to a nine-month low in March, suggesting the central bank may have been too slow to signal another interest rate cut as the data continued to fall short of its inflation target.
Lower power tariffs pulled Brazil's inflation rate below the official target range and even the lowest of forecasts in January. Consumer prices tracked by the benchmark IPCA index rose 2.86% in the twelve months through January, government statistics agency IBGE said on Thursday.