Inflation in Brazil Hits Highest Level in Four Years

The inflation rate in Brazil exceeded 5% last month for the very first time in more than four years, as shown by official data on Thursday.

Annual consumer inflation rose by 5.20% in February, its highest level since January 2017.

The inflation rate exceeded market expectations of registering about 5.06%.

The surge in consumer prices is largely attributed to the increase in transport costs that rose by 2.28% last month due to fuel prices increasing by 7% on a monthly basis.

Meanwhile, the monthly inflation rate increased to 0.86%, its highest reading since 2016.

Inflation data are expected to push the Central Bank of Brazil to raise interest rates for the first time since 2015 during its upcoming meeting next week.