Brazil’s 2025 Inflation Closes at 4.26%, Back Within Target for First Time Since 2019

Overview

• Consumer prices rose 0.33% in December, with Transport the biggest monthly driver as app rides jumped 13.79% and airfares 12.61%, while Housing fell 0.33% on a switch to a cheaper power tariff band.
• Food and beverages increased 2.95% in 2025, with food at home up 1.43%, a slowdown linked by IBGE to a record harvest, a weaker dollar and softer commodity prices.
• Services inflation accelerated to 6.01% in 2025, and residential electricity rose 12.31%, the largest single subitem impact on the year’s IPCA.
• Just ten items accounted for 54.69% of the annual rise, led by electricity, regular courses, health plans, rent, snacks and meals, pharmaceuticals, ground coffee, personal hygiene and domestic worker pay.
• The INPC reached 3.90%, setting many benefit adjustments below the IPCA, as officials lauded the result and the Central Bank kept the Selic at 15% with a restrictive stance.