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Tue, February 11, 2025

Brazil's inflation slows in January but tightening cycle to continue


Published on 2025-02-11 10:41:02 - Reuters
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  • Brazil's inflation rate slowed in January from the previous month, data showed on Tuesday, but the 12-month rate was still above the upper end of the central bank's target range, keeping expectations intact for another rate rise next month.

Brazil's annual inflation rate slowed to 4.51% in January, down from 4.62% in December, aligning with market expectations and falling within the central bank's target range of 1.75% to 4.75% for the year. Despite this slowdown, the central bank has indicated that its monetary tightening cycle, which has seen the benchmark interest rate rise to a six-year high of 13.75%, will likely continue into 2025. This decision is influenced by ongoing concerns about inflation expectations, fiscal risks, and the need to anchor inflation expectations. The central bank's cautious approach aims to ensure that inflation remains under control, even as economic growth forecasts are revised downwards.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/americas/brazils-inflation-slows-january-tightening-cycle-continue-2025-02-11/ ]
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