Inflation in Brazil ends 2024 above the target

Sao Paulo., Brazil’s annual inflation closed in December at 4.83 percent, reported the statistics agency IBGE. Although the figure was below market forecasts of 4.88 percent and 4.87 the previous month, it remained above the upper limit of the Central Bank’s target range, while those responsible for the organization tighten monetary policy so that prices return to the goal.

Despite the modest easing of inflation in Latin America’s largest economy, economists believe the figure will not prevent the Brazilian Central Bank from continuing to raise interest rates.

The bank previously stated that inflation was almost certain to end 2024 above its target range of 1.5 percent to 4.5 percent, at a level it expects to hold into the third quarter.

The bank’s policymakers voted unanimously last month to accelerate its pace of tightening with a one percentage point hike, putting the rate at 12.25 percent.