Brazil’s 12-month inflation rate reached its lowest level in ten years at 4.08% in April and will likely dip further in the coming months, the Brazilian Census Bureau (IBGE) said Wednesday. Monthly inflation in April was a microscopic 0.14%, down from 0.25% in March. The 12-month rate fell smartly from 4.57% as of March to 4.08% and could dive below the psychologically important 4.0% mark within the next month or two. Brazilian inflation was last below 4.0% in 2007. April saw declining housing and fuel costs and modest rises in food prices. Brazil’s government is now well within its 2017 target of inflation at 4.5% or lower. Inflation was 6.3% in 2016. The declining inflation rate has led to calls by economists for steep cuts in interest rates.
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