FX.co ★ Brazil Inflation Rises Further to Over 2-Year High

In March 2025, Brazil's annual inflation rate rose for the second consecutive month, reaching 5.48%, the highest level recorded since February 2023, and aligning with market expectations. This increase was chiefly driven by the cost of food and beverages, which climbed to 7.68% from February's 7%. Transportation costs also rose, reaching 6.05% compared to 5.21% in the previous month. Additionally, prices in the categories of health and personal care (increasing slightly to 5.79% from 5.78%), personal expenses (up to 5.28% from 4.88%), and clothing (which saw a rise to 3.53% from 2.95%) contributed to the inflationary pressures. On a month-to-month basis, consumer prices saw a 0.56% increase in March, in line with forecasts, although this represented a slowdown from the previous month's 1.31% increase.