SAO PAULO (Reuters) -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.

Consumer prices in Latin America’s largest economy rose 0.26% in July, the agency said, ticking up from 0.24% in the prior month but below the 0.37% increase forecast by economists polled by Reuters.

Prices were up 5.23% in the 12 months through July, IBGE added, down from 5.35% in the previous month. Market participants had expected the annual rate to come in at 5.33%.

Brazil’s central bank in July interrupted an aggressive tightening cycle that had added 450 basis points to its benchmark interest rate, bringing it to nearly a 20-y

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