UPDATE 1-Brazil inflation meets forecasts, resumes downtrend in mid-October

Brazil's annual inflation came in broadly in line with market expectations in its early October reading, resuming a downward trend as economists now forecast the key consumer price index to end this year within the central bank's target. The IPCA-15 index hit 5.05% in the year to mid-October, data from statistics agency IBGE showed on Thursday, down from the 5.19% seen at the end of September and in line with the 5.04% forecast by analysts polled by Reuters. Inflation in Latin America's largest economy had accelerated in recent months because of unfavorable base effects related to tax cuts provided in 2022, but economists now see the worst behind it and believe it should continue to trend down going ahead, allowing the central bank to keep cutting interest rates.