Brazil Inflation Slows in July

2025-08-12 12:59 By Isabela Couto 1 min. read

Brazil’s annual inflation rate slowed to 5.23% in July 2025, the lowest in five months, from 5.35% in June and below market expectations of 5.33%.

The slowdown was mainly driven by weaker price growth in transport (3.6% in July vs 5.11% in June), clothing (4.12% vs 4.68%), education (6.15% vs 6.21%), and communication (1.89% vs 2.16%).

In contrast, inflation quickened for food and beverages (7.44% vs 6.66%), housing (5.44% vs 5.3%), healthcare (5.4% vs 5.16%), and personal expenses (6.07% vs 5.81%).

On a monthly basis, consumer prices rose 0.26% in July, slightly up from 0.24% in June, led by a 3.04% jump in household electricity while prices for clothing declined 0.54%.

The central bank of Brazil kept interest rates at 15% in July to curb cost-of-living pressures, signaling the need to remain vigilant against above-target inflation and the lingering effects of US President Donald Trump’s trade war.



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