The annual rate of consumer price inflation in Brazil was 2.8 percent last month, slower than the median forecast of 2.88 percent by analysts polled by Reuters, the news agency reports.

Reuters says the monthly rate of inflation was 0.28 percent last month, slowing from 0.42 percent the month before.

The report says the annual rate of inflation this year is likely to fall below the official target of 4.5 percent or thereabouts.

That could mean more cuts in interest rates next year, Reuters says.

The Brazilian central bank reduced last week its main interest rate by 50 basis points to 7 percent, the lowest in history.