Brazil's inflation undershot market expectations in July, data from statistics agency IBGE showed on Tuesday, with a monthly drop in food prices providing some relief even as the annual rate remained well above the central bank's target.

Brazil’s inflation rate fell much more than expected in July, a drop that offers some relief to consumers but is unlikely to change the central bank’s plans to keep interest rates at sky-high levels for the foreseeable future.

Brazil's inflation in July was below market expectations, data published Tuesday by the statistics agency IBGE showed.