Silver Rises Over 120% YTD 
Brazil’s inflation climbed to 5.35% in June, marking the sixth straight month above the central bank’s 3% target and signaling continued pressure on the country’s monetary policy. While the Selic rate was raised to a 15% high in June — the highest in nearly two decades — the central bank may now pause further hikes as it assesses the impact.
A tight labor market and elevated public spending are complicating efforts to control prices, especially with eight out of nine consumer categories seeing gains in June. Electricity and housing costs were the biggest drivers, while food prices declined slightly.
Investors will closely watch the central bank’s official explanation for missing its inflation goal, required under Brazil’s new rules. With Lula’s reelection campaign looming, and price forecasts still elevated, the bank faces mounting pressure to maintain credibility in its inflation fight.
