The pace of Brazilian inflation eased in June as fuel prices declined and services stabilized, the Brazilian Census Bureau (IBGE) said Friday. June monthly inflation weighed in at 0.35 percent, down from 0.78 percent in May. That was enough to pull down the 12-month rate to 8.84 percent in June from 9.32 percent as of May. The figure is still far from Brazil’s goal of 4.5 percent for 2016. However, the June performance raised hopes among economists that inflation will continue to ease through the end of the year, giving Brazil a chance to meet the 4.5 percent target in 2017. Easing inflation could also persuade the Central Bank to reduce Brazil’s punishing base rate, currently 14.25 percent, before the end of this year, economists said.
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