# Brazil's strong labor market fuels inflation fears ahead of expected rate hike

> Brazil's unemployment rate fell to 6.4% in the three months through September, below market expectations and the second-lowest level on record. Strong job creation has raised fears of inflation and a more aggressive central bank response.

- Date: 2024-10-31 · published 2024-10-31T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/28084-brazil-s-strong-labor-market-fuels-inflation-fears-ahead-of-expected-rate-hike
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Expectations of higher Brazilian interest rates tend to support the real, which can slow the pace of Brazilian export price cuts. The tight labour market also signals firm domestic demand for meat and feed.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-10-27 | [Brazil's real gains as bets rise for large rate hike - Markets - Business Recorder](https://feedsoft.ai/events/44785-brazil-s-real-gains-as-bets-rise-for-large-rate-hike-markets-business-recorder.md) | +1.7% | +0.2% |
| USDBRL | 2025-01-17 | [Brazil's Haddad says high interest rates will curb inflation](https://feedsoft.ai/events/26715-brazil-s-haddad-says-high-interest-rates-will-curb-inflation.md) | -2.7% | -5.5% |
| USDBRL | 2021-01-20 | [Brazil's real rises ahead of c.bank meeting, rest of Latam trails - Markets - Business Recorder](https://feedsoft.ai/events/49388-brazil-s-real-rises-ahead-of-c-bank-meeting-rest-of-latam-trails-markets.md) | +1.5% | +2.0% |
| USDBRL | 2021-12-08 | [Brazil's real rallies over 1% ahead of interest rate decision \| Financial Post](https://feedsoft.ai/events/43829-brazil-s-real-rallies-over-1-ahead-of-interest-rate-decision-financial-post.md) | +0.7% | +1.3% |
| USDBRL | 2025-08-13 | [Brazilian markets gain momentum on easing inflation outlook](https://feedsoft.ai/events/23532-brazilian-markets-gain-momentum-on-easing-inflation-outlook.md) | +1.6% | +0.3% |

## Sources

- reuters.com: https://www.reuters.com/markets/emerging/brazil-unemployment-drops-second-lowest-level-record-64-2024-10-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.