BRASILIA: Brazil's inflation rate eased much more than expected in November, falling below 7 percent for the first time since 2014 and paving the way for the central bank to accelerate the pace of rate cuts soon.
Consumer prices as measured by the benchmark IPCA index rose 6.99 percent in the 12 months through November, down from an increase of 7.87 percent in the previous month, government statistics agency IBGE said on Friday.
The median expectation for the 12-month rate was 7.08 percent, according to a Reuters poll of economists.
Prices rose 0.18 percent in November from October, below all 29 market forecasts in a Reuters poll.
Yields on interest rate futures fell as traders added bets that the central bank would cut its benchmark interest rate by 50 basis points at its next meeting in January. Economists see lower inflation and interest rates as crucial for the economy to emerge from its worst recession in at least eight decades.
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