The latest IPCA-15 index release by the Brazilian Institute of Geography and Statistics shows a 0.44 percent rise in consumer prices for the first half of May, slightly below market expectations. The index, a reliable indicator of inflation in Brazil, witnessed an acceleration after two months of slowdown, with prices rising across various product groups, notably pharmaceuticals and transportation.
Finance Minister Fernando Haddad’s recent comments on the country’s inflation target of 3 percent have sparked debate among investors, leading to a downgrade in inflation forecasts for the year. The upcoming meeting of the National Monetary Council has raised speculations on whether the target might change, given the government’s stance. However, government sources suggest no immediate plans for altering the target.