BRASILIA (Reuters) - Brazil’s annual inflation rate probably fell for a ninth straight month in May, showing no sign of price pressures that could stop the central bank from cutting interest rates further in coming months, a Reuters poll showed on Wednesday.
Consumer prices likely rose 3.79 percent in the 12 months through May, down from an increase of 4.08 percent in April and well below the official target of 4.5 percent, according to the median of 24 forecasts in the survey. BRCPIY=ECI
That inflation rate would be the lowest for Brazil since July 2007. Estimates ranged between 3.62 and 3.84 percent.
Prices probably rose 0.50 percent in May from April, up from a rise of 0.14 percent in the previous month, according to the median of 25 forecasts ranging between 0.45 and 0.60 percent.
National statistics agency IBGE is scheduled to release the benchmark IPCA price index on Friday at 9 a.m. (1200 GMT).
Economists expect inflation to keep slowing to about 3 percent in three months, which would probably leave the central bank comfortable to cut rates from the current 10.25 percent to around 8.5 percent by December.
The central bank has already lowered the benchmark Selic rate by 400 basis points since October in an attempt to help the economy recover from its worst recession on record.
Reporting by Silvio Cascione; Editing by James Dalgleish