The annual inflation rate in Brazil jumped to 3.99% in July of 2023, sharply rebounding from the near-three-year low of 3.16% in the previous month and firmly above market expectations of 3.93%, moving above the BCB's target of 3.25%. The result halted twelve consecutive months of slowing inflation in the Brazilian economy, raising doubts on whether the Brazilian central bank will resume cutting interest rates at the fast pace from the last meeting. Inflation rebounded for transportation (0.25% vs -5.68%), as gasoline deflation slowed considerably (-10.66% vs -26.35% in June) after the central government reinstated fuel taxes. Inflation also edged higher for housing and utilities (4.37% vs 4.32%) amid higher electricity bills (3.2% vs 1.18%). On the other hand, inflation slowed for food and non-alcoholic beverages (2.2% vs 4.01%). On a monthly basis, the IPCA index edged 0.12% higher, rebounding from the 0.08% decline in the previous period, source: Instituto Brasileiro de Geografia e Estatística (IBGE)

Inflation Rate in Brazil averaged 311.94 percent from 1980 until 2023, reaching an all time high of 6821.31 percent in April of 1990 and a record low of 1.65 percent in December of 1998. This page provides - Brazil Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Brazil Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.

Inflation Rate in Brazil is expected to be 3.94 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Brazil Inflation Rate is projected to trend around 4.10 percent in 2024 and 4.20 percent in 2025, according to our econometric models.

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Brazil Inflation Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-07-11 12:00 PM Jun 3.16% 3.94% 3.17% 3.23%
2023-08-11 12:00 PM Jul 3.99% 3.16% 3.93% 3.86%
2023-09-12 12:00 PM Aug 3.99% 4.44%


Related Last Previous Unit Reference
Inflation Rate 3.99 3.16 percent Jul 2023
Inflation Rate MoM 0.12 -0.08 percent Jul 2023
Consumer Price Index CPI 6667.94 6659.95 points Jul 2023
Food Inflation 2.20 4.01 percent Jul 2023
CPI Transportation 6384.29 6289.94 points Jul 2023
CPI Housing Utilities 11127.49 11241.02 points Jul 2023

Brazil Inflation Rate
In Brazil, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. The most important categories of the index are: Transport (20 percent); Food and beverages (19 percent of the total weight) ; housing (15 percent); health care (13 percent); and personal expenses (11 percent). Also, Communication accounts for 4 percent; education for 6 percent; clothing for 5 percent; household goods for 4 percent. Data is collected in the Metropolitan Areas of São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Belém, Fortaleza, Recife, Salvador and Curitiba and in the cities of Goiânia and Brasília.
Actual Previous Highest Lowest Dates Unit Frequency
3.99 3.16 6821.31 1.65 1980 - 2023 percent Monthly

News Stream
Brazilian Inflation Rebounds More than Expected
The annual inflation rate in Brazil jumped to 3.99% in July of 2023, sharply rebounding from the near-three-year low of 3.16% in the previous month and firmly above market expectations of 3.93%, moving above the BCB's target of 3.25%. The result halted twelve consecutive months of slowing inflation in the Brazilian economy, raising doubts on whether the Brazilian central bank will resume cutting interest rates at the fast pace from the last meeting. Inflation rebounded for transportation (0.25% vs -5.68%), as gasoline deflation slowed considerably (-10.66% vs -26.35% in June) after the central government reinstated fuel taxes. Inflation also edged higher for housing and utilities (4.37% vs 4.32%) amid higher electricity bills (3.2% vs 1.18%). On the other hand, inflation slowed for food and non-alcoholic beverages (2.2% vs 4.01%). On a monthly basis, the IPCA index edged 0.12% higher, rebounding from the 0.08% decline in the previous period,
2023-08-11
Brazil Cuts Interest Rates More than Expected
The central bank of Brazil cut its key Selic rate by 50 bps to 13.25% in its August meeting after keeping the borrowing cost on hold for the eighth consecutive session, while the market expected a 25 bps cut. The Committee reinforces the need to persevere with a contractionary monetary policy until not only the disinflation process is consolidated, but also the anchoring of expectations around its targets. Domestically, the annual inflation slowed to 3.16% in June from 3.94% in May, still above the inflation target. The Board noted that inflation projections stand at 4.9% in 2023, 3.4% in 2024 and 3.0% in 2025. The Committee also points out that the total magnitude of the easing cycle over time will depend on the evolution of inflationary dynamics.
2023-08-02
Brazilian Inflation Drops to Near 3-Year Low of 3.2%
The annual inflation rate in Brazil receded to 3.16% in June of 2023 from 3.94% in the prior month, the lowest since September 2020 and broadly in line with market forecasts. It was the fourth consecutive month that Brazil recorded an inflation rate below the central bank’s upper tolerance band of 4.75%. The moderation in overall inflation was primarily driven by a steeper decline in prices for transportation (-5.68% vs -4.75%), of which fuels (-26.35% vs -25.86%) and further cooling in prices of food & beverages (4.01% vs 5.54%), helped by a bumper harvest. There was also a slowdown in prices of clothing (9.66% vs 11.11%), healthcare & personal care (10.37% vs 11.62%), personal expenses (6.97% vs 7.11%), among others. On a monthly basis, Brazilian consumer prices edged down by 0.08% in June, the first drop since last September, also matching market estimates. Downward pressure came mostly from prices of food & beverages (-0.66%), transportation (-0.41%) and household items (-0.42%).
2023-07-11