Brazil's headline inflation decelerated to an annual 3.81pc in February, mainly driven by transport costs and school tuition readjustments.
The consumer price index IPCA slowed from 4.44pc in January, national statistics agency IBGE said on Thursday, after accelerating from 4.26pc in December.
The annual figure was down from 5.06pc in February 2025 and marked the lowest headline reading since 3.93pc in May 2024.
Housing costs fell to 5.67pc in February from 10pc the prior month, helped by slower gains in electricity.
Transport costs were among the largest contributors to the monthly gain in the IPCA, rising to 2.49pc on an increase in flight tickets and bus tickets, despite gasoline pushing down motor fuels costs, IBGE said.
Food and beverage costs, which weigh heavily on the index, decelerated to an annual 1.76pc in February from 2.20pc in January. Lower prices for coffee and eggs pushed down the result, IBGE's research manager Fernando Goncalves said.
Brazil's central bank has kept its target interest rate elevated at 15pc since June 2025.
