Brazilian consumer prices rose more than expected in the month to mid-May, statistics agency IBGE said on Tuesday, marking the sharpest jump for the period in six years as the country grapples with galloping inflation, Reuters reported. The IPCA-15 consumer price index rose 0.59% in the month, according to IBGE. That was down from 1.73% in the previous month as the central bank has raised interest rates aggressively, but still above expectations of a 0.45% rise, according to the median forecast in a Reuters poll. Inflation in the 12 months to mid-May hit 12.20%, up from 12.03% in mid-April.

Brazil's Economy Ministry on Friday said it needs to freeze 10 billion reais ($2.1 billion) in expenditures to comply with the spending cap rule, which limits spending growth to the previous year's inflation, Reuters reported. The limitation highlights President Jair Bolsonaro's difficulties to approve new expenses that are not yet included in the budget while seeking reelection in October.

Brazil's government debt as a share of gross domestic product fell to 78.5% in March, the lowest level in almost two years, with improved revenues in states and municipalities leading to a new primary surplus for the month, Reuters reported. That compares with a gross debt of 79.2% of GDP in February, to the best result since April 2020 (78.4%), when the country was beginning to be hit by the coronavirus pandemic. Booming revenue, helped by a surge in commodities, has lifted the government's budget, while expenditures have not grown at the same pace due to a constitutional spending cap.

Services activity in Brazil rose more than expected in March and at a record pace for the month, official figures showed on Thursday, marking a strong recovery from the severe downturn caused by the COVID pandemic, Reuters reported. Services activity increased 1.7% in March from February, more than double the 0.7% growth expected by economists according to a Reuters poll, reaching its highest level since May 2015, the government statistics agency IBGE reported. That put the sector 7.2% above the level of February 2020, before the onset of the pandemic.

Latin American central banks will likely extend their monetary tightening campaigns beyond what was originally expected after inflation surged past forecasts in April, with steep increases in food and fuel costs stinging policy makers, Bloomberg News reported. Brazil’s consumer prices rose 12.13% from a year prior according to data released Wednesday, the fastest pace in nearly two decades and also above the 12.06% median estimate in a Bloomberg survey. Headline inflation also topped forecasts in Peru, Colombia and Chile in the same month, as did the closely-watched core index in Mexico.

Retail sales in Brazil rose more than expected in March, the third straight monthly gain, despite double-digit inflation in Latin America's largest economy, official figures showed on Tuesday, Reuters reported. According to government statistics agency IBGE, sales grew 1% in March from February, more than the 0.4% increase forecast in a Reuters poll of economists. Six of the eight activities surveyed recorded growth, with computer and communication office equipment and supplies gaining 13.9%.

Industrial production in Brazil rose in March, but ended the first quarter with a negative print, highlighting the challenges for the sector amid problems in global chains and a domestic scenario marked by high interest rates and inflation, Reuters reported. Industrial output grew 0.3% in March from February, government statistics agency IBGE said on Tuesday, slightly above the 0.2% increase projected in a Reuters poll of economists. Still, it stood 2.1% below the level in February 2020, before the onset of the pandemic, the agency said.

Creditors of Brazilian miner Samarco Mineracao SA, a joint venture of Vale SA and BHP Billiton Ltd, on Monday rejected the debt restructuring plan presented by the company in an online creditors assembly, Reuters reported. Creditors are expected to present an alternative plan for the debt restructuring within 30 days. Representatives of 99.3% of unsecured credits rejected the plan, while smaller creditors in different classes voted favorable to the company's plan.

Brazilian Economy Minister Paulo Guedes said on Friday that the federal government plans to create a poverty eradication fund that would be fed from the sale of public assets, Reuters reported. Speaking at a presidential event, he mentioned plans of creating "Fundo Brasil," comprising 1 trillion reais ($210.51 billion) in real state assets and 1 trillion reais in shares of state-owned companies.

Creditors of Brazilian miner Samarco Mineracao SA have suspended their assembly to reconvene on April 1 after the company presented a new restructuring plan on Thursday, Reuters reported. Samarco, a joint venture between Vale SA and BHP Group PLC, changed its restructuring plan to offer a new alternative to pay creditors, hybrid bonds that will distribute part of Samarco's cash flow. The company did not change other conditions in the plan, such as the 75% haircut over the bonds face value.