MNI BRIEF: Brazil's Inflation Down To 5.32% In May

Brazil's IPCA inflation was 5.32% in May, slightly below the 5.39% consensus and down from 5.53% in April, the Brazilian Institute of Geography and Statistics (IBGE) said Tuesday.

Inflation remains above the upper limit of the Central Bank of Brazil's 3% target range, which allows for a 1.5-percentage-point deviation in either direction.

On a monthly basis, inflation was 0.26%, down from 0.43% and below the 0.32% consensus.

"We observed that the deceleration in food prices, which dropped from 0.82% in April to 0.17% in May, and the 0.37% decline in Transportation costs ended up offsetting the 1.19% increase in the Housing group, ultimately reflecting in the final result of the overall index," IBGE said. 

The BCB raised its Selic rate by 50 basis points again last month to 14.75%, offering no forward guidance for June. (See: MNI INTERVIEW: Lack Of BCB Guidance Doesn't Mean End Of Cycle)