Brazil Inflation Slows to 14-Month Low in November

Brazil’s CPI rose 4.44% year-on-year in January 2026, up from 4.26% in December and broadly in line with market expectations of 4.43%. Price pressures were strongest in housing (10.06%), education (5.97%), personal expenses (5.76%), healthcare (5.59%), and clothing (4.88%). Meanwhile, the mildest inflation rates were recorded in household articles (0.01%), communication (1.78%), food and beverages (2.20%), and transport (2.36%). On a monthly basis, consumer prices increased 0.33% in January, the same as in December and compared to forecasts of 0.32%. The largest upward pressure came from transport prices, which rose 0.6%, driven mainly by increases in gasoline prices (2.06%) and city bus fares (5.14%). Communication prices also climbed sharply, rising 0.82%, led by higher telephone prices (2.61%).

Brazil’s annual inflation rate eased to 4.26% in December 2025 from 4.46% in November, marking the lowest reading since August 2024 and coming slightly below market expectations of 4.30%. Price pressures were strongest in housing (6.79%), followed by education (6.22%), personal expenses (5.87%), and health and personal care (5.59%). Food and beverages inflation slowed notably to 2.95% from 3.88% in November. Residential electricity prices jumped 12.31% in 2025, representing the single largest subitem impact, amid tariff adjustments and the application of all tariff flags throughout the year. In contrast, household articles recorded deflation (-0.28%). On a monthly basis, consumer prices rose 0.33% in December, accelerating from 0.18% in the prior month but remaining slightly below forecasts of 0.35%.

The annual inflation rate in Brazil fell to 4.46% in November 2025 from 4.68% in the previous month, the lowest since September 2024 and below market expectations of 4.49%. Prices eased for food and beverages (3.88% vs 5.50%), transport (3.00% vs 3.69%),personal expenses (6.14% vs 6.83%), and communication (0.77% vs 0.88%). Also, cost fell for household articles (-0.26% vs 0.43%). In contrast, inflation accelerated for housing (6.54% vs 4.36%), clothing (5.71% vs 5.07%), health and self-care (5.44% vs 5.42%), and education (6.26% vs 6.21%). Rio Branco registered the lowest regional inflation at 3.21%. Month-on-month, consumer prices rose 0.18%, up from 0.10% in October.