Brazil Inflation Preview Exceeds All Calls, May Delay Rate Cut
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Wholesale, consumer and construction prices as measured by the IGP-M index in the end of May jumped more than forecast by all economists, suggesting new central bank chief Ilan Goldfajn may need to wait longer before he begins cutting interest rates. Swap rates rose.
The index as calculated by Fundacao Getulio Vargas rose 1.12 percent between May 21-31, almost double the median 0.67 percent forecast from 10 analysts surveyed by Bloomberg. It also marked a steep acceleration from the 0.59 percent reading in the same period of the previous month. The reading is a preview for the monthly IGP-M index released at the end of the month.