Brazil May IPCA Inflation Report

Brazil's May IPCA inflation reached 0.58% mom (4.72% yoy), surpassing consensus expectations due to regulated prices. However, core inflation measures were largely in line with expectations, and services inflation trended slightly lower.

Key Takeaways

• 1.May IPCA inflation printed at 0.58% mom (4.72% yoy), exceeding the 0.53% consensus.
• 2.Upside surprise in headline inflation was driven by regulated prices (gasoline and electricity tariffs), while services inflation was slightly below expectations.
• 3.Challenging inflation dynamics, including persistent services inflation and deteriorating expectations, necessitate a conservative monetary policy stance.

Table of Contents

• Bottom line
• KEY NUMBERS (May)
• DETAILS