BRASILIA. (Reuters) – Brazil’s inflation slowed slightly in April. However, it posted its steepest monthly increase in 26-years. The 12-month total climbed to over 12% despite continuing pressures on fuel and food. Official figures were released Wednesday.

According to the IPCA benchmark index, consumer prices increased by 1.06% in April. It was slightly more than the 1.0% predicted by economists, however, it is still lower than March’s 1.62% increase.

IBGE statistics reported that the result for the month was driven by the growth in food and beverage (+2.06%) as well as transport (+1.91%), which are two of many groups affected by rising commodities and disruptions in supply chains following the Russia-Ukraine War.

In April, eight of nine groups were surveyed reported increases. This reinforces the rise in inflation in Latin America’s largest economy. Due to lower energy prices, only housing expenditures fell (-1.14%).

Prices increased 12.13% in April compared to 12.07% predicted by the poll and were higher than March’s 11.3% print.

This is still well below the 3.5% official goal for this year.

The decline in inflation has caused economists to make worse their outlooks for not just 2022 but for the next year as well. This led to the central bank signaling a possible interest rate hike in June after having already raised rates to 12.75% in April 2021 from a record low of 2% in March 2021.