MNI BRIEF: Brazil's June Inflation At 5.35%, BCB Letter Due

Brazil's IPCA inflation was 5.35% in June, slightly above the 5.30% consensus and up from 5.32% in May, the Brazilian Institute of Geography and Statistics (IBGE) said Thursday.

Inflation has remained above the upper limit of the Central Bank of Brazil's 3% target range for six consecutive months, and the central bank must publish a letter explaining the reasons, as well as a strategy and timeline to bring inflation back to target. According to the BCB press office, the document will be released at 5 PM ET.

The target range allows for a deviation of 1.5 percentage points in either direction.

On a monthly basis, inflation was 0.24%, down from 0.26% and above the 0.20% consensus.

The BCB raised its Selic rate by 25 basis points last month to 15.00%. (See MNI INTERVIEW: No BCB Rate Hike Ahead, 2025 Cut Likely-Kanczuk)