Brazil’s annual inflation rose to 4.63% in October from 4.58% in September, marking a four-month high and remaining above the central bank’s 4.5% target ceiling. The reading was below the 4.74% market expectation, while consumer prices increased 0.14% from the previous month, down from 0.82% in September and below the 0.25% economist forecast. Food and beverage prices rose 1.04% in October, while transport and housing costs declined 0.59% and 0.51%, respectively. With 12-month inflation above target, the central bank is expected to remain cautious about resuming the Selic easing cycle after pausing rate cuts and holding the benchmark at 13.75%. The Ibovespa fell more than 0.5% to around 171,000 as credit-sensitive shares weakened. Itaú, Bradesco and Itaúsa each lost nearly 1%, while Banco do Brasil plunged nearly 8% after third-quarter results missed estimates and the bank reduced its projections and dividends. B3 fell 1% ahead of results, Axia declined 1.5%, and Rede D’Or lost more than 0.5% before its earnings. Vale dropped 1% as iron ore prices weakened, while Petrobras gained more than 1% despite volatile oil prices. President Luiz Inacio Lula da Silva’s reelection last month weakened the Brazilian real and pushed long-term interest rates and inflation forecasts higher. Capital Economics chief emerging markets economist William Jackson said further easing would require inflation to resume a downward trend, probably from March, alongside fiscal reform to reduce risk premia.