2023.06.0714:17:00UTC+00Brazil's Inflation Eases To 3.94%, Lowest In 31 Months

Brazil's consumer price inflation eased further in May to reach its lowest level in just over two-and-a-half years, figures from the Brazilian Institute of Geography and Statistics, or IBGE, showed on Wednesday.

The consumer price index climbed 3.94 percent year-over-year in May, slower than the 4.18 percent rise in April. Economists had expected inflation to ease to 4.04 percent.

This was the lowest inflation rate since October 2020, when prices had risen by 3.92 percent.

Moreover, inflation stayed within the central bank's target range of 1.75 percent to 4.75 percent for the third straight month.

Transport costs fell 4.75 percent annually in May amid a sharp decline in gasoline prices.

Meanwhile, prices for food and drinks increased at a faster pace of 5.54 percent in May versus a 4.50 percent gain in the prior month.

On a monthly basis, consumer prices edged up 0.23 percent in April, following a 0.61 percent rise in the previous month. The expected increase was 0.33 percent.