Brazil's consumer inflation increases in May

By Ovunc Kutlu

ISTANBUL (AA) - Brazil's consumer inflation showed both monthly and annual gains in May, according to figures released Tuesday by the Brazilian Institute of Geography and Statistics (IBGE).

Consumer inflation monthly increased 0.46% in May, gaining pace from a 0.38% month-on-month rise recorded in April.

The figure also came in slightly higher than market estimates of 0.42%.

The health and personal care group showed an increase of 0.69%, while food and beverages rose 0.62%, and transportation gained 0.44%, IBGE said in a statement.

On an annual basis, consumer price index rose 3.93%, also accelerating from a 3.69% increase in April.

That figure was also higher than expectations of a 3.88% year-on-year gain.

Brazil’s central bank on May 8 lowered its benchmark interest rate by 25 basis points to 10.5%, its seventh consecutive rate cut and the lowest level since February 2022.