Brazil's official inflation indicator IPCA closed at 6.5 percent in 2011, up from 5.91 percent in 2010,the government's statistics agency said Friday.

It was the highest inflation rate registered since 2004, but didn't surpass the upper limit of the inflation target set for 2011, according to the Brazilian Institute of Geography and Statistics (IBGE).

The IPCA index dropped to 0.5 percent in December from 0.52 percent in November, whereas it stood at 0.63 percent in the same period in 2010.

Brazilian interim finance minister Nelson Barbosa said the country's inflation rate in 2011 was within expectation.

"We had expected the rate to be below 6.5 percent, and we hope the downward path to continue, heading to the inflation target," said Barbosa.

Central Bank President Alexandre Tombini also projected the country's inflation rate to fall in 2012.

According to the IBGE, prices in most categories rose more in 2011 than in 2010. The most significant price rises were seen in food products and beverages, transportation and housing.

"We hope the inflation rate to be below 5 percent this year," Barbosa added, stressing that food products prices have already been falling and prices in the tertiary sector are likely to remain stable due to a lower unemployment rate.

Xinhua