Brazil's monthly inflation slowed for the fourth time in a row in June, but the annual rate ticked up and remained well above the official goal, data showed on Thursday, prompting the central bank to release a letter to justify missing the target.

The official rate surpassed 4.5% for the sixth time in a row, thus breaching the new method adopted by the National Monetary Council early this year to gauge the adequacy of price changes.

Despite external trade headwinds and tight domestic monetary conditions, Brazil's finance ministry has upgraded its 2025 economic outlook.

Brazil's monthly inflation is expected to have slowed for the fourth time in a row in June due in part to lower gasoline prices, a Reuters poll showed.

Brazil’s Central Bank released a letter explaining why the Broad National Consumer Price Index (IPCA) surpassed the target in June.

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Brazil's central bank on Thursday said it was confident in its strategy to hold interest rates steady even as its updated projections showed it would not meet its 3% inflation target through 2027.

Official data to be published on Tuesday will likely show inflation ran at a 0.33% monthly rate and 5.40% in the 12 months to May, according to median estimates of 19 economists polled June 4-9.

Brazil's central bank expressed confidence in its capacity for keeping inflation close to the official target until the end of 2027.