UPDATE 1-Brazil inflation at lowest in more than 2 years as rate cuts expected

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Consumer prices in Brazil decelerated more than expected in May, government data showed on Wednesday, with 12-month inflation hitting its lowest in more than two years as it dropped below the 4% mark for the first time since late 2020. Annual inflation in Latin America's largest economy hit 3.94% in May, statistics agency IBGE said, down from 4.18% in the previous month, reaching its lowest since October 2020. Consumer prices as measured by the benchmark IPCA index , IBGE added, rose 0.23% in the month, an eight-month low, and also below market forecasts of 0.33%.