Rio de Janeiro, Apr 6 (IANS): Brazil's inflation is under control as latest statistics show the inflation rate dropped to its lowest level since July 2011, Finance Minister Guido Mantega said.

The inflation rate declined to 0.21 percent in March from 0.45 percent a month earlier, the lowest since July, while inflation accumulated in the first quarter of 2012 was 1.22 percent, down 50 percent year on year, according to the official statistics agency IBGE.

The inflation target for this year is 4.5 percent with a two-percentage point tolerance, reported Xinhua.

Mantega Thursday said the trend would allow a higher growth rate in 2012, after the country's GDP growth decelerated to 2.7 percent last year from the 7.5 percent registered in 2010.

"I think the lower inflation rate opens the possibility of more economic stimulus for the fall of interest rate in the private sector, in the banks," he added.

In 2012, the government expects to grow at four to 4.5 percent, and has already announced a package of measures to help the industry and increase the sector's competitiveness.