Brazilian inflation continued its downward curve in November, dropping from a 12-month level of 7.87 percent as of October to 6.99 percent, the Brazilian Census Bureau (IBGE) said Friday. Monthly inflation in November was a mere 0.18 percent, with food prices in decline and many big-ticket items stable or declining. Fuel prices and services costs rose in November. Inflation may now be within reach of the government’s target range for 2016 of 2.5 percent to 6.5 percent. A continued downward curve could bring inflation down to the government’s core target of 4.5 percent by next year, according to economists. November’s inflation figures may also prompt the Central Bank to pick up the pace of interest rate cuts. In November, the bank cut its base rate by 25 basis points to 13.75 percent. According to economists, the bank may now be ready to make a 50-point cut to 13.25 percent at its next meeting in January.
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