LatinNews Daily - 15 May 2023

In brief: Brazil’s inflation slows in April

* Brazil’s national statistics institute (Ibge) has released the latest consumer price index (IPCA), which showed monthly inflation of 0.61% in April, bringing annual inflation to 4.18%. This marked a slowdown in inflation since March, when monthly inflation stood at 0.71% and annual inflation at 4.65%. However, inflation impacted more sectors in April compared to March, as all nine product categories measured saw a rise in prices, with April’s inflation mainly driven by price rises for health and personal care (+1.49%). Despite the slowdown in inflation, Brazil’s central bank (BCB) is unlikely to lower the benchmark interest rate anytime soon. Brazil’s government has repeatedly criticised the BCB for keeping the rate so high, having maintained it at 13.75% for six consecutive months. The president of the ruling Partido dos Trabalhadores (PT), Gleisi Hoffmann, described the BCB’s monetary policy as “criminal” given the deceleration of inflation that was recorded in April.

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