BRASILIA: Brazil's inflation rate eased much faster than expected in February to its lowest since 2010, data showed on Friday, strengthening the case for a steeper interest rate by the central bank next month.
Consumer prices rose 4.76 percent in the 12 months through February, government statistics agency IBGE said, down from an increase of 5.35 percent in January and below all expectations in a Reuters poll of economists.
Yields on interest rate futures were down in early trading as investors saw a greater likelihood that the central bank would cut its benchmark interest rate by 100 basis points in April, after reducing it by 75 basis points at its last meeting.
Most economists expect Brazil's inflation to undershoot the government's target of 4.5 percent this year as the economy struggles to recover from its worst recession on record.
The IPCA index of consumer prices rose 0.33 percent in February, the lowest increase for the month since 2000.
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