BRASILIA, Dec 11, 2025 (BSS/AFP) - Brazil recorded year-on-year inflation of 4.46 percent in November, dropping into the Central Bank's target range for the first time this year, the national statistical bureau reported Wednesday.

Price increases had topped the high end of the targeted range, 4.5 percent, throughout 2025, hurting the popularity of leftist President Luiz Inacio Lula da Silva.

But inflation has been gradually moderating in Latin America's largest economy, partly due to food prices.

In October, it reached 4.68 percent, and the market expects it to close the year at 4.4 percent, according to the Central Bank of Brazil's Focus bulletin.

Despite the drop in inflation, the bank on Wednesday kept its benchmark interest rate unchanged at 15 percent -- among the world's highest.

Lula has repeatedly called on the monetary authority to lower the interest rate to promote growth.

Although it helps contain prices, a high interest rate makes credit more expensive and discourages consumption and investment.

US President Donald Trump imposed 50 percent tariffs on Brazil in August. But after a meeting with Lula in October, several products have been exempted from this tariff, which now affects 22 percent of Brazil's exports, according to the government.