Brazil inflation drops to 4.08pc

Brazil's annual inflation rate fell to 4.08 percent in April, lower than official estimates and raising hopes that the South American economic giant is emerging from a prolonged slump.

It was the lowest increase in prices in almost a decade, when the July 2007 inflation rate came in at 3.74 percent. The result also surprised markets, and is only expected to pick up speed after inflation hits highs of 10.67 percent in 2015 and 6.29 percent last year.

The IPCA price index in April showed an increase of 0.14 percent against March, when it had risen to 0.25 percent, the Brazilian Institute of Geography and Statistics said. The IPCA index had logged a 0.61 percent rise in April 2016. It was the lowest month-on-month price increase since June 2012, when it hit 0.08 percent.