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Brazil central bank governor flags oil, El Nino shocks as inflation runs hot

BY Reuters | ECONOMIC | 09:43 AM EDT

BRASILIA, May 19 (Reuters) - Brazil's central bank governor Gabriel Galipolo said on Tuesday the economy is set to face two supply shocks - higher oil prices and the risk of a very strong El Nino - at a time of elevated inflation.

Speaking at a Senate hearing, Galipolo said the average of core inflation measures is currently running at the same level as headline inflation, both above the official 3% target.

He noted that unemployment is at a record low and income growth remains robust in Latin America's largest economy. (Reporting by Marcela Ayres; Editing by Gabriel Araujo)

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