Brazil Inflation Eases Again, Rate Hopes Brighten

Brazil’s annual inflation rate eased to 4.26% from 4.46%, a 0.20 percentage-point decline that marks a 4.5% drop in the pace of price increases compared with the prior reading. The latest figure extends the disinflation trend, signaling slightly lower price pressures than in the previous period.

The outcome came in just below the analyst estimate of 4.30%, a marginal downside surprise that supports expectations for a more accommodative interest-rate stance over time. Equity markets are likely to view the data as mildly positive, with rate-sensitive sectors such as financials, real estate, and consumer discretionary names poised to benefit from a friendlier inflation backdrop. The immediate impact should center on sentiment, while any sustained effect will depend on how the reading shapes central bank policy expectations.