Inflation in Brazil eased in December with the annual rate ending the year at 2.95 per cent in a country which has traditionally struggled with runaway prices.
While this was above analysts forecasts, it remains the lowest annual rate since 1998.
Brazil’s measure of consumer price inflation, the IPCA index, rose 0.44 per cent in December compared to the previous month, the highest spike in 2017 the national statistics agency IBGE said on Wednesday. Consumer prices then closed the year below the central bank’s inflation target range of 4.5 per cent plus or minus 1.5 percentage points.
While Latin America’s largest economy is emerging from its worst-ever recession with economic growth forecast by the IMF to double to 1.5 per cent in 2018, a continued fall in inflation from 6.29 per cent at the end of 2016 has allowed policymakers at the central bank to slash rates to a record low of 7 per cent.