Brazil’s headline inflation printed at 5.32% YoY in May, down from 5.53% in April (see chartpack for more). Core inflation slowed to 5.17% YoY from 5.26%, the first reduction since August 2024 and only the second in the past year. Importantly, inflation expectations have stabilised and even begun to decrease while key series like core services and tradable inflation also showed signs of stabilisation.
For more, including market takeaways, please see full note.