Brazil inflation tops target at 6.1pc Afp, Braslia Afp, Braslia
Brazil s annual inflation rate broke through the ceiling of the central bank s target range in March at 6.1 per cent, officials said Friday, adding to headaches for policy makers facing an economic slowdown and rising prices.
The rate increased sharply from 5.2 per cent in February and far surpassed the central bank s target limit of 5.25 per cent, making it almost certain the bank will hike interest rates for the second straight time at its next meeting in May, analysts said.
That would further put the brakes on price increases but also economic growth, at a time when Latin America s biggest economy is already showing signs of trouble as a deadly surge of Covid-19 wreaks havoc on the country. The central bank is clearly worried by above-target inflation and another 75 basis-point hike in the Selic (benchmark interest) rate, to 3.5 per cent, at the next meeting in May l