Brazil's inflation slowed to an annual 4.44pc in July, with lower housing costs helping to offset higher electricity bills.
The consumer price index IPCA decelerated from 4.64pc in June and 4.72pc in May, national statistics agency IBGE said on Tuesday. The latest decline puts inflation within the central bank's target range of 1.50-4.50pc.
Food and beverage costs, which weigh heavily on the index, contributed the most to the monthly deceleration in the IPCA, decelerating to an annual 3.4pc in July from 3.82pc in June. Lower prices for coffee, fruits and vegetables largely drove the declines, IBGE said.
Housing costs was the largest monthly contributors to the gain in the index in July, with its inflation accelerating to an annual 5.93pc from 5.85pc a month earlier, mostly thanks to electricity bills and tax readjustments for power supply in some southern states.
Transport costs slowed to an annual 3.64pc in July from 3.95pc in June. Lower prices for ethanol, diesel, gasoline and compressed natural gas weighed on motor fuel costs, despite an increase in airfares
The annual gain for July was down from 5.23pc in July 2025.
The central bank expects inflation to end 2026 at 5.03pc, above its 1.5-4.5pc expected range. It also expects inflation at 4.22pc for 2027 and 3.8pc for 2028.
Brazil's central bank lowered its target rate to 14pc in its latest meeting, held last month, a fourth such quarter point cut since March after holding it at 15pc since mid-2025 to stem inflation.
