BRASILIA: Brazil's inflation finished 2016 within the official target range, government data showed on Wednesday, reinforcing calls for an aggressive cycle of interest rate cuts by the central bank as the economy remains mired in recession.
Consumer prices rose 6.29 percent in 2016, slowing from an increase of 10.67 percent in 2015 and below the 6.5 percent ceiling of the official goal.
Prices rose 0.30 percent in December from November, slightly below market forecasts for an increase of 0.33 percent.
It was the fourth month in a row when prices rose more slowly than economists in a Reuters poll had expected.
During most of 2016, the central bank had been widely expected to miss its target for the second year in a row.
The surprisingly fast slowdown in prices prompted the central bank to start cutting interest rates from 14.25 percent beginning in October to try to avoid a third year of recession.
The next central bank policy meeting is later on Wednesday. Most economists expect a reduction of 50 basis points in the benchmark Selic rate, to 13.25 percent.
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