So just maybe the high rates are supporting the inflation?

Brazil Central Bank Signals Further Increase in Interest Rates (WSJ) “Advances achieved in the fight against inflation…aren’t enough yet,” the bank’s monetary-policy committee said in minutes from last week’s meeting, when its policy rate, known as Selic, was raised to 12.25% from 11.75%. The central bank began raising borrowing costs in April 2013, when the Selic stood at a historic low of 7.25% and annual inflation was 6.49%. Brazil’s annual inflation was 6.41% in 2014, above the central bank’s 4.5% target and just below the 6.5% maximum tolerated. The central bank now forecasts a 9.3% increase in controlled prices this year, up from 6% previously. Economic growth, however, will be “below potential” in 2015, the bank said.