Brazil's inflation rate rose to the highest level since 2016

Statistics agency IBGE said today that the annual rate of consumer inflation in Brazil rose to 6.10% in March versus 5.20% in February, the highest level since December 2016, and analysts had expected inflation to reach 6.20% in March. Monthly inflation rose to 0.93% in March from 0.86% in February, the highest level since March 2015, and the central bank last month achieved the first increase in borrowing costs since 2015, raising the interest rate by 75 basis points to 2.75%. Central Bank President Roberto Campos Neto said that the partial normalization of the bank’s monetary policy will continue unless high inflation rates and inflation expectations are noticed significantly. The director of economic policy at the Bank, Fabio Kanzuk, said that the basic scenario for policymakers is a neutral flat rate of 3% in real terms or 6%. 6.5% in nominal terms, which is supposed to be reached next year