Brazil Inflation Accelerates in April

Consumer prices in Brazil rose 0.89% month-on-month in the first half of April 2026, a significant acceleration from March's 0.44%. All nine surveyed product and service groups posted gains, with food and beverages and transportation driving 65% of the index. Food prices surged 1.46%, led by sharp increases in carrots (25.43%), onions (16.54%), milk (16.33%), and tomatoes (13.76%). Transportation costs jumped 1.34%, reversing March's trend, driven by a 6.06% spike in fuel prices. Gasoline rose 6.23% and diesel soared 16.00% as the conflict in Iran and the closure of the Strait of Hormuz pushed global oil prices higher. Health and personal care rose 0.93% due to pharmaceutical price adjustments of up to 3.81%, while housing costs accelerated to 0.42% following electricity tariff hikes.

Consumer prices in Brazil rose 0.44% month-over-month in the first half of March 2026, above the 0.29% forecast but easing from February's 0.84%. All nine product and service groups posted gains. Food and beverages led at 0.88%, followed by personal expenses at 0.82%. Housing rose 0.24% and transportation 0.21%, while other groups ranged from 0.03% (communications) to 0.47% (clothing). Meanwhile, fuel prices fell 0.03% overall, driven by declines in vehicle gas (-2.27%), ethanol (-0.61%), and gasoline (-0.08%), whereas diesel increased by 3.77%. The government of Brazil has cut taxes and introduced subsidies for diesel, and Petrobras currently has wholesale diesel prices below international parity. By region, Recife (0.82%) and Belém (0.68%) posted the highest rates. São Paulo saw 0.52% inflation and Rio de Janeiro 0.46%. Year-over-year, prices rose 3.90%, down from 4.10% in the prior 12-month period and below the central bank's 4.5% upper threshold, the lowest since May 2024.

Consumer price in Brazil rose by 0.84% in the first half of February from the corresponding period of the previous month, well above the market expectations of 0.6% to pick up from the 0.20% increase in the earlier period, marking the sharpest increase in one year. Prices soared for transportation (1.72% vs -0.13% in mid-January) amid a 5.39% surge in public transportation fares and a 1.38% increase in fuel prices. Prices also accelerated sharply in education (5.20% vs 0.05% in mid-January). In the meantime, consumer price increase displayed more habitual patterns for food and beverages (0.20% vs 0.31%) and housing and utilities (0.06% vs -0.26%). From the previous year, consumer prices rose by 4.1%, remaining below the Brazilian central bank's upper threshold of 4.5% to mark the lowest since June 2024.