Brazil Inflation Hits 7-Year Low

Brazil’s rate of inflation hit a seven-year low when it fell to 4.89% for the year through to mid-April from 5.3% as at the end of March. Monthly inflation was down to 0.17% as at mid-April, down from 0.43% at end-March. A slight strengthening in the real helped to bring down the cost of imports, in turn slowing inflation, as measured by the IPCA consumer price index. The continuing benign inflationary environment is good news for the Central Bank as it looks forward to further interest rate cuts.