Of the nine groups that make up the index, health and personal care experienced the largest monthly increase, of 0.69%.

The Consumer Price Index (CPI) of Brazil has increased by 0.24 percentage points in May compared to April, standing at 3.93% year-on-year, leaving behind the streak of seven consecutive months of decline .

In April, when it stood at 3.69% year-on-year, inflation was at the lowest level since June of last year, when it was 3.16% year-on-year. Now, however, the index has broken this trend and is once again approaching the upper range of the target, 4%.

In this context, it is worth noting that the Central Bank of Brazil decided last May to cut interest rates by 25 basis points, bringing the monetary policy rate to 10.5%, compared to the reductions of 50 basis points in previous meetings. .

"The current situation, characterized by a stage of the disinflationary process that tends to be slower, unanchored inflation expectations and a challenging global scenario, requires serenity and moderation in the conduct of monetary policy," the bank noted in the minutes. of the meeting.

Meanwhile, as reported this Tuesday by the Brazilian Institute of Geography and Statistics (IBGE), monthly inflation was 0.46%, which is 0.08 percentage points more than in April. In the accumulated index for the year, inflation reaches 2.27%.

Of the nine groups that make up the index, health and personal care experienced the largest monthly increase, of 0.69%. This is followed by accommodation (0.67%), food and non-alcoholic beverages (0.62%) and clothing (0.5%), all above average.

On the contrary, only the residential items division had a monthly contraction of 0.53%, even higher than that experienced in April.