Annual inflation in Brazil scaled 8% in May for the first time in more than four years, figures showed on Wednesday, a figure higher than economists had forecast which will likely confirm another punchy interest rate hike from the central bank next week.
The 0.8% monthly rate of inflation was also the highest for any May since 1996, statistics agency IBGE said, adding that all nine categories surveyed showed rising prices in the month.
The annual rate of consumer inflation jumped to 8.1% from 6.8% in April, IBGE said, more than the median forecast in a Reuters poll of economists for 7.9% and the highest since September 2016.
The central bank's year-end goal is 3.75%, with a 1.5 percentage point margin of error on either side. This shows inflation running well above even the 5.25% upper limit of that range.
The monthly rate rose from 0.3% in April, IBGE said, again more than the 0.7% rise economists in the Reuters poll had forecast.
All nine categories surveyed by IBGE showed rising prices in May with housing costs rising 1.8%, household goods up 1.3% and transport costs, which include fuel, rising 1.2%, IBGE said.
Central bank chief Roberto Campos Neto said on Tuesday that policymakers are "100% committed" to meeting their inflation goals, and that they still think much of the recent rise is due to temporary shocks.
The bank's 2022 target is 3.50%, again with a 1.5 percentage point margin of error on either side.
The central bank is widely expected to deliver its third 75 basis point increase in borrowing costs next week, raising the Selic rate to 4.25%.