Brazil’s federal government collected a record BRL 266.8 billion in taxes and contributions in May, marking a real-term increase of 10.7% year-on-year, according to data released by the Receita Federal on Thursday.
The surge was primarily fueled by higher oil prices, which boosted revenues from energy-related levies and royalties.
2% annually. The juxtaposition of strong fiscal receipts in Brazil against sticky inflation in the US highlights diverging macroeconomic dynamics across major economies.
The record figure for the month underscores the continued fiscal tailwind provided by the commodity cycle, even as global inflationary pressures persist.
The release comes as markets brace for further inflation data from the United States.
US Personal Consumption Expenditures (PCE) inflation accelerated to 4.1% year-on-year in May, its highest level in over three years, while consumer price inflation is expected to climb to 4.2% annually.
The juxtaposition of strong fiscal receipts in Brazil against sticky inflation in the US highlights diverging macroeconomic dynamics across major economies.