Brazil inflation drops in November

Brazil's inflation rate fell sharply in November, official data showed Friday, giving the central bank more breathing room as it seeks to accelerate the pace of interest rate cuts.

The annual IPCA inflation rate fell to 6.99 percent from 7.87 percent in October, said national statistics institute IBGE.

The monthly rate came in at 0.18 percent. That was well below the average forecast in a Bloomberg poll of economic analysts -- 0.27 percent.

It was the lowest rate for November since 1998.

Brazil, Latin America's largest economy, is struggling with a toxic cocktail of high inflation and deep recession.

It also has some of the world's highest interest rates, seen as a brake on growth.

The key Selic rate currently stands at 13.75 percent, after two consecutive 0.25-point cuts. The central bank has indicated it wants to accelerate the pace of cuts.

But it is wary of fueling inflation, which is still hovering well above its target of 4.5 percent.