BRASILIA, April 11 (Reuters) -

Brazil's inflation slowed in March, in line with

expectations, but the 12-month reading remained under pressure

amid rising food prices, official data showed on Friday.

Consumer prices as measured by the benchmark IPCA index

rose 0.56% in March, matching the median forecast of economists

polled by Reuters.

The increase followed a 1.31% rise in February and was the

biggest for the month of March since 2023, according to

statistics agency IBGE.

All categories of goods and services posted increases, with

food and beverages weighing most heavily on the index as price

gains accelerated to 1.17% from 0.70% in the previous month.

Soaring food prices have been one of the key factors behind

the declining approval ratings of leftist President Luiz Inacio

Lula da Silva.

Over the 12-month period, inflation rose 5.48%, up from

5.06% in February and well above the central bank's 3% target,

which allows for a tolerance range of 1.5 percentage points in

either direction.

The figures, however, came in below the expectations of

policymakers in the quarterly monetary policy report released in

late March, when they projected a 0.63% rise for the month and

annual inflation at 5.55%.

The central bank had warned that monthly consumer price

gains were likely to remain elevated, with 12-month inflation

hovering around 5.5% amid continued pressure from at-home food

prices.

The central bank has raised the benchmark Selic rate by 375

basis points since September, pushing it to 14.25%, and it has

penciled in another hike at its policy meeting next month.