Brazil inflation returns to target before election

Brazil's inflation returned to the government's target range in July, helped by lower food and fuel prices, official data showed Tuesday.

The IBGE statistics agency said annual inflation eased to 4.44 percent in July. That put inflation inside the government's target range of 1.5 percent to 4.5 percent for the first time since April.

Monthly inflation slowed to 0.07 percent in July from 0.16 percent the previous month.

The data was released two months before Brazil's presidential election. President Luiz Inacio Lula da Silva is seeking a fourth non-consecutive term, and the cost of living is a key voter concern.

Brazil's central bank has one of the world's highest benchmark interest rates as it tries to curb inflation. It cut the rate from 14.25 percent to 14 percent earlier this month, but remains wary of inflation pressure from the war in the Middle East, which has disrupted oil supply.

Lula's government has subsidized fuel prices to help ease the impact on consumers.