Brazil's Ibovespa climbs nearly 3% as June inflation eases
Brazil's June consumer price index (IPCA) posted a 0.16% month‑on‑month rise, well below analysts’ expectations and marking a slowdown from May’s 0.58% increase. The annual rate eased to 4.64%, reinforcing market hopes that the central bank’s Monetary Policy Committee (Copom) may resume cutting the Selic rate in August.
The softer inflation data drove the Ibovespa up 2.97% to 177,866 points, its highest close since May, while the U.S. dollar slipped to around R$5.10, its lowest level in three weeks. Lower food prices, helped by cheaper freight costs and a modest harvest improvement, contributed to the inflation dip. Oil prices remained stable, and investors kept an eye on the ongoing U.S.–Iran tension that continues to influence commodity markets.