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Brazil inflation slows to 4.26pc in Dec

  • Mercados: Agriculture, Biofuels, Electricity, Fertilizers, Oil products
  • 09/01/26

Brazil's headline inflation decelerated to an annual 4.26pc in December, mainly driven by power tariffs within housing costs.

The consumer price index IPCA eased from 4.46pc in November, national statistics agency IBGE said Friday, after decelerating from 4.68pc in October.

The annual figure was down from 4.83pc in December 2024 and marked the lowest year-end reading since 3.75pc in December 2018. The result came in below the 4.5pc forecast by the national monetary council CNM.

Housing costs, personal expenses, education and healthcare were among the largest contributors to IPCA in December, accounting for 64pc of the annual result, IBGE said.

Food and beverage costs, which weigh heavily on the index, decelerated to an annual 2.95pc in 2025 from 7.69pc a year prior. Food expenses at home decelerated to 1.43pc to end 2025 from 8.23pc in December 2024, driven mainly by lower rice and milk costs in the period.

Housing costs accelerated to an annual 6.79pc in December 2025 from 3.06pc in December 2024, driven by recurring power tariffs from May-December. Power costs accelerated to 12.31pc in December after up to 21.95pc of tariff readjustments throughout the year.

As for services, the index accelerated to 6.01pc in December 2025 from 4.78pc a year earlier.

Brazil's central bank has kept its target interest rate stable at 15pc since June 2025. The central bank has said it plans to keep the rate steady to counter inflation.


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