Brazil Inflation Accelerates But Undershoots Forecasts Slightly

Brazil’s monthly inflation rate accelerated to 0.33% from 0.18%, a 0.15 percentage-point increase that represents roughly an 83% pickup in price momentum. The result confirms a clear move higher in short-term inflation pressures compared with the prior reading.

However, the 0.33% print came in slightly below the 0.35% analyst estimate, easing fears of an even sharper inflation spike and tempering expectations for aggressive monetary tightening. Equity markets are likely to read the softer-than-expected figure as modestly supportive, especially for rate-sensitive sectors such as financials, utilities, and domestic consumer stocks. Still, the underlying acceleration keeps the focus on medium-term inflation and central bank policy, limiting the scope for a strong risk-on reaction.