Brazil's benchmark IPCA consumer price index increased 2.89% in the 12 months through September, marking the first annual inflation reading of below 3.0% since May 2018, according to data from statistics agency IBGE.
The figure is lower than the 3.43% inflation rate registered in the 12 months through August and is also below Banco Central do Brasil's official 2019 target of 4.25%, Reuters reported.
Annual inflation for the first nine months of 2019 came in at 2.49% after the index fell 0.04% in September from the previous month. The September result is the lowest for that month since 1998, the IBGE said.
The decline in inflation gives the central bank more room to reduce interest rates further, Economy Minister Paulo Guedes told reporters.
The inflation data "shows that everything is under control, that's good," Reuters quoted Guedes as saying. "What is happening is that the economy is starting to grow" and "low inflation means that Brazil can cut interest rates."
Brazil's central bank cut its benchmark Selic rate by 50 basis points to a record low 5.50% in September. Its two remaining monetary policy decisions for 2019 are scheduled for Oct. 30 and Dec. 11.
