Central Bank of Brazil Governor Roberto Campos Neto said Friday inflation looks set to keep trending lower toward the 3% target despite increased global uncertainty.

"The inflation convergence towards the target is happening. We've had some bumps along the way, but overall, there's nothing indicating that it's gone off track," he said at an event sponsored by the Young Presidents' Organization (YPO) in Sao Paulo.

"We're concerned and uncertain about the effect of this overheated labor market in the services sector but, so far, we're not seeing anything significantly beyond the margin of error, so it's within what we anticipated would happen," he added. (See MNI INTERVIEW: BCB Still Likely To Cut By 50 In May-Figueiredo)