Brazil mid-September inflation exceeds forecasts ahead of tight election

Brazil's mid-September inflation accelerated more than expected, official data showed on Friday, ​adding to concerns about persistent price pressures as ‌voters head into a tight presidential election and the central bank weighs its next steps after cutting interest rates ​for a fifth straight meeting.

Annual inflation hit ​4.47% in the period, statistics agency IBGE said, ⁠up from 4.24% a month earlier and ​above all forecasts in a Reuters poll of economists, ​which had a median estimate of 4.30%.

In the month to mid-September, consumer prices rose 0.70%, reversing a 0.40% decline in ​mid-August and exceeding the median forecast of ​0.53% in the Reuters survey

Housing costs were the main driver of ‌the ⁠monthly increase, rising 2.07% as electricity prices moved higher, while closely-watched food and beverage prices rose 0.4%

Annual inflation remained within the central bank's target ​range of 3%, ​plus or ⁠minus 1.5 percentage points

The bank lowered the benchmark Selic rate by 25 basis ​points last week to 13.75%, citing signs ​of ⁠an economic slowdown, and kept its options open ahead of next month's election

Inflation has become a central campaign ⁠issue ​as leftist President Luiz Inacio ​Lula da Silva seeks re-election in a tight race against right-wing Senator ​Flavio Bolsonaro