MNI BRIEF: Brazil's Inflation Up To 5.53% In April

Brazil's IPCA inflation measure rose by 5.53% in April, in line with the 5.52% consensus and up from 5.48% in March, the Brazilian Institute of Geography and Statistics (IBGE) said Friday.

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 0.43%, down from 0.56% and in line with the 0.42% consensus.

"The Food and Beverages group slowed from 1.17% in March to 0.82% in April. Food consumed at home rose by 0.83%, while food consumed away from home increased by 0.80%. Contributing to this result were price increases for potatoes (18.29%), tomatoes (14.32%), ground coffee (4.48%), and snacks (1.38%). On the downside, rice stood out with a decline of 4.19%," IBGE said.

The BCB raised its Selic rate by 50 basis points again this week to 14.75%, offering no forward guidance for June. (See MNI WATCH: BCB To Halt Rate Hikes, Higher for Longer Strategy)