Brazil's services sector faces highest cost pressures in 8 months: report

"Service providers report substantial rise in expenses," says S&P Global.

Cost pressures in Brazil's services sector climbed in June to reach their highest levels in eight months, according to a report released by the US-based financial services company S&P Global on Wednesday.

"Service providers report substantial rise in expenses," said the report. "Average expenses increased to the greatest extent in eight months, and charge inflation subsequently accelerated."

The S&P Global PMI Brazil Services Business Activity Index stood at 54.8 in June, which came in above the neutral mark of 50.0 for the ninth consecutive month, it added.

The index stood at 55.3 in May.

"The accelerated increase in input costs seen in the services PMI data could present challenges to the Brazilian economy and add to concerns among policymakers, particularly as the central bank halted the easing cycle and kept the policy rate unchanged at 10.5% in June," said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.