BRASILIA (Reuters) – Brazil’s annual rate of inflation likely eased in May, according to a Reuters poll of economists, falling for the first time this year in a sign that it may have peaked, while remaining well above the central bank’s target.
The median estimate from 15 economists was for consumer price inflation to fall to 4.72% in the 12 months through May from 4.90% in April, driven by weaker food and fuel prices.
Rise - % - % - April - Poll
The monthly rise is seen slowing to 0.20% from 0.57% in April, according to the poll, a rate that would be the lowest this year.
“We anticipate food deflation to have gained momentum in the second half of May, which underpins our expectation for (monthly) inflation to have moderated to 0.21% in May,” said Barclays economists in a note to clients. “If our forecast is correct, annual inflation should decelerate to 4.7%.”
Central - Bank - Policymakers - Forecasts - April
Central bank policymakers will be hoping the forecasts are right. April’s annual inflation of 4.9% was the highest in more than two years, above the central bank’s year-end target of 4.25% and brought a break above the 5.0% threshold...
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