Brazil's National Consumer Price Index (IPCA) stood at 4.72% year-on-year in May, above the 4.39% recorded in the same month of the previous year, according to data released this Friday by the Brazilian Institute of Geography and Statistics (IBGE).
In monthly terms, prices advanced 0.58% in the fifth month of the year, below the 0.67% registered in April, which represents a slowdown of nine tenths. With this, the accumulated inflation since January stands at 3.20%.
By spending groups, food and beverages led the increases with a 1.33% rise, followed by housing, with 1.22%, and health and personal care, which rose 0.90%. On the other hand, transportation became cheaper by 0.46%, education remained unchanged, and household goods advanced 0.08%.
In the realm of monetary policy, the Central Bank of Brazil agreed at the end of April to a 25 basis point interest rate cut, placing them at 14.50%. The body justified this decision to "temper" the "economic fluctuations" derived from the Iran war and to support the objective of full employment.