The official inflation rate in Brazil, measured by the IPCA (Broad National Consumer Price Index), decelerated to 0.43% in April, after reaching 0.56% in March, according to data released on Friday (9) by the IBGE (Brazilian Institute of Geography and Statistics). The new result was in line with the median forecast of the financial market, which was 0.42%, according to Bloomberg. The range of estimates was between 0.38% and 0.6%. With the April data, the IPCA accumulated a 5.53% increase over 12 months, according to the IBGE. The result is above the 5.48% registered in March. The accumulation remains distant from the 4.5% ceiling of the inflation target pursued by the BC (Central Bank). In an attempt to curb prices, the institution has raised the basic interest rate, Selic, which reached 14.75% per year this week, the highest level in almost two decades. The rate hike aims to cool down demand for goods and services and thus reduce inflationary pressure. The possible collateral effect is a loss of momentum in economic activity, as credit becomes more expensive for consumption and productive investments. The BC is now pursuing the inflation target continuously from 2025, abandoning the so-called calendar year (January to December). In the new model, the target will be considered unfulfilled when the IPCA accumulated remains outside the tolerance interval for six consecutive months, ranging from 1.5% (floor) to 4.5% (ceiling). The central target is 3%. The financial market projects an IPCA of 5.53% by the end of this year, according to the latest edition of the Focus bulletin, released on Monday (5) by the BC. The forecast has fallen in the last three weeks of the survey, but remains distant from the 4.5% ceiling. The Lula government has celebrated positive economic data, including GDP growth, income growth, and unemployment reduction to historic lows. On the other hand, food inflation has become a concern for the president and his supporters. The scarcity of these products mainly affects low-income families and is pointed out as one of the main reasons for Lula's approval rating decline in early 2024. Food prices rose in a scenario of climate problems and high dollar.
https://jornaldebrasilia.com.br/noticias/economia/inflacao-desacelera-a-043-em-abril/