Brazil's mid-January inflation meets forecasts ahead of rate decision

SAO PAULO, Jan 27 (Reuters) -

Brazil's annual inflation ticked up in early January but came in broadly in ?line with expectations ahead of the central bank's interest ?rate decision this week, government statistics agency ?IBGE said on Tuesday.

* Annual inflation ?reached 4.50% ?in mid-January, while economists polled by Reuters had expected 4.51%.

* It ?accelerated from 4.41% ?in the previous reading but remained within the central bank's target range of ?3%, plus or minus ?1.5 ?percentage points.

* In the month to mid-January, prices rose 0.20%, down from 0.25% a month earlier. ?Economists had forecast a 0.21% rise.

* The monthly result was mainly driven by higher health and personal care costs, IBGE said.

INTEREST RATES

* Brazil's central bank has kept its key ?rate ?at 15%, the highest in nearly two decades, to tame sticky inflation.

* Policymakers meet ?on Tuesday and Wednesday, with markets widely expecting rates to be kept unchanged for a fifth straight meeting.

* Suno Research chief economist Gustavo Sung said he expects the central bank to take ?a cautious stance this week and begin an easing cycle in March, amid an ongoing disinflation process.

(Reporting ?by Isabel Teles; Editing by Gabriel Araujo)