Brazil's inflation slows in March, but annual rate remains under pressure
BRASILIA, April 11 (Reuters) - Brazil's inflation slowed in March, in line with expectations, but the 12-month reading remained under pressure amid rising food prices, official data showed on Friday.
Consumer prices as measured by the benchmark IPCA index rose 0.56% in March, matching the median forecast of economists polled by Reuters.
The increase followed a 1.31% rise in February and was the biggest for the month of March since 2023, according to statistics agency IBGE.
All categories of goods and services posted increases, with food and beverages weighing most heavily on the index as price gains accelerated to 1.17% from 0.70% in the previous month.
Soaring food prices have been one of the key factors behind the declining approval ratings of leftist President Luiz Inacio Lula da Silva.
Over the 12-month period, inflation rose 5.48%, up from 5.06% in February and well above the central bank's 3% target, which allows for a tolerance range of 1.5 percentage points in either direction.
The figures, however, came in below the expectations of policymakers in the quarterly monetary policy report released in late March, when they projected a 0.63% rise for the month and annual inflation at 5.55%.
The central bank had warned that monthly consumer price gains were likely to remain elevated, with 12-month inflation hovering around 5.5% amid continued pressure from at-home food prices.
The central bank has raised the benchmark Selic rate by 375 basis points since September, pushing it to 14.25%, and it has penciled in another hike at its policy meeting next month.
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