Brazil's inflation remained well above the central bank's target range in its mid-July reading, official data showed on Friday, as policymakers gather next week for a meeting at which they are widely expected to hold interest rates at a two-decade high.

Inflation figures released last week in Brazil showed the country had pierced the target ceiling for the first time since the National Monetary Council changed early this year the way the accumulated increase is calculated.

Brazil central bank is likely to keep its base Selic interest rate on hold at 15.% on July 30, keeping its tightest monetary stance.

Brazil's central bank will hold its benchmark interest rate at a two-decade high of 15% on July 30, according to a unanimous Reuters poll, although economists said it could acknowledge some moderation of inflation expectations.

Brazil ended 2022 with inflation at close to six percent, a lower figure than the previous year but still above the government target, the official statistics institute said on Tuesday.

Brazil central bank slashed their 2026 inflation projection for the first time in over two months, in what may be a positive sign for monetary authorities.

Official data to be published on Tuesday will likely show inflation ran at a 0.33% monthly rate and 5.40% in the 12 months to May, according to median estimates of 19 economists polled June 4-9.

It's something Brazilians have rarely seen in a quarter century, and the last time they did, in 2016, it helped set up a president's downfall: Double-digit inflation.

Brazil's central bank will hold its benchmark interest rate at a two-decade high of 15% on July 30, according to a unanimous Reuters poll, although economists said it could acknowledge some moderation of inflation expectations.