Brazil’s Inflation Slows More Than Expected but Remains Above Target
Brazil’s inflation has cooled more than analysts anticipated, yet it still sits above the country’s official target, a central bank official said on Thursday.
Diogo Guillen, the bank’s economic policy director, said strong domestic demand continues to fuel price pressures, requiring contractionary monetary policy to remain in place for a “very long” time. His remarks came during a closed-door presentation later published by the central bank.
Guillen highlighted that Brazil’s robust labor market has supported both household consumption and income growth. He also stressed that services inflation remains above levels consistent with achieving the official 3% inflation target.
