2024-04-10 17:07:14
This content was published on April 10, 2024 – 7:07 p.m.
(Keystone-ATS) Inflation in Brazil fell significantly in March to 3.93% year-on-year, falling below 4% for the first time since July 2023, according to official figures published Wednesday by the IBGE statistics institute. .
Over one month, the price increase reached 0.16% in March, much less than in February (+0.83%).
Inflation over one year was lower than expected by experts consulted by the economic daily Valor, who expected 4.01%. In February, it stood at 4.50%.
The rate of 3.93% over 12 months is the lowest since June 2023, when it was 3.16%, before rising to 3.94% in July. It is within the range – between 1.5% and 4.5% – targeted by the Brazilian Central Bank (BCB).
The price of food increased once more in March (+0.53%) “due to problems linked to climate issues”, explained the IBGE.
Lower rates
But this increase is “less intense” than in February, when it reached 0.95%.
Analysts and financial institutions consulted for the Central Bank’s weekly Focus survey expect inflation to reach 3.76% in 2024.
The BCB initiated a cycle of gradual reduction of its key rate in August, thanks to controlled inflation, even if it remains one of the highest in the world. It was set at 10.75% last month and a further reduction of 0.5 points is expected in May.
Left-wing President Luiz Inacio Lula da Silva has repeatedly called for a deeper reduction, saying high interest rates hamper growth.
But the Monetary Committee of the Central Bank (Copom), responsible for setting this rate, reported in March “greater uncertainty”, which requires “moderation”.
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