Brazil’s annual inflation slowed to 4.95% in early August, easing from 5.3% in the previous report, according to official figures published on Tuesday.
The monthly consumer price index (CPI) slipped 0.14%, marking the first monthly decline since 2023. The drop was mainly driven by falling food and transportation prices, which provided some relief to households.
Even with the slowdown, the result was slightly above market expectations, which had projected a 4.89% increase. Analysts noted that while inflation is cooling, the central bank is likely to keep interest rates elevated in the near term to secure lasting price stability.
