Brazil Mid-Month Inflation Comes in Below Forecasts

Consumer prices in Brazil rose 0.06% in the month to mid-July 2026, slowing sharply from 0.41% in June and coming in below forecasts of 0.2%. The reading marked the lowest mid-month inflation rate since August 2025. Food and beverage prices provided the largest downward contribution, falling 0.66%. Food consumed at home dropped 1.14%, while food away from home accelerated to 0.55%. Housing was the main source of inflationary pressure, rising 0.97%, driven by a 3.03% increase in residential electricity prices following the introduction of the yellow tariff flag and regulated tariff adjustments in several cities. Transportation prices rose 0.11%, as an 11.7% jump in airfares more than offset lower fuel prices amid easing concerns over the Middle East oil supply crisis. Health and personal care costs increased 0.28%, led by higher personal hygiene product prices. The 12-month inflation rate eased to 4.52% from 4.58% in June.





