Brazil's inflation rose 0.23 percent in the month to mid-September. That's down from 0.45 percent in the previous month and below the 0.35 percent expected in polling by Reuters. The easing of inflation underscores bets on an imminent rate cut by the central bank. Yields on interest rate futures are down. Investors are betting a 90-percent chance of a rate cut in October.

Currently, the benchmark interest rate is holding steady at 14.25 percent, the highest in a decade. Economists says a slowdown in the inflation is good but is still prudent on the effect.