The IPCA print for April was approximately in line with expectations, registering at 0.42% (consensus: 0.43%). On an annual basis, the index increased to 5.53% from 5.48%. Breaking down the data, all core measures remained significantly above target. The core average stayed near 6% on a three-month moving average seasonally adjusted annual rate (3mma SAAR) for the fourth consecutive month. Core services inflation was around 7.7%, with all subcomponents still elevated, especially the labor-intensive group, which remained near 8%. Core goods inflation rose to 5.3% 3mma SAAR from 4.3%, likely due to last year’s currency depreciation.
Overall, Brazil’s CPI remains well above target, showing no signs of disinflation at the margin.