Inflation in Brazil for November slowed down as gas prices declined. The monthly inflation rate came down to 0.55 percent from 0.75 percent in October. The annual interest rate also declined to 6.22 percent from 6.36 percent. The slowdown in inflation has caused speculation the central bank will lower the benchmark lending rate.

The bank has cut the rate 1.25 percentage points over the past three months. The rate is currently at 18.5 percent. Transportation price increases came down to 0.7 percent in November from 2.2 percent in October. Household goods, education and communication were the three other segments that witnessed a decline this month. Bloomberg reports:

"The central bank will stick to its rate cuts as there is no reason to change that yet," Adauto Lima, an economist at WestLB AG's unit in Sao Paulo, said in a telephone interview. The yield on the overnight future contract for Jan. 2 delivery fell 3 basis points, or 0.03 percentage point, to 18 percent at 9:06 a.m. New York time.