Brazil’s annual inflation rate accelerated to 4.72% in May 2026, up from 4.39% in April and slightly above market expectations of 4.66%, reaching its highest level since September 2025. Price pressures strengthened across several categories, including food and beverages (3.87% vs. 0.69%), housing (6.22% vs. 6.19%), clothing (4.60% vs. 4.38%), health and personal care (6.04% vs. 5.66%), personal expenses (5.77% vs. 5.71%), and communication (1.75% vs. 1.59%).
Energy and fuel inflation remained high at 8.90%, edging up from 8.80% in April, as supply disruptions stemming from the closure of the Strait of Hormuz amid the US–Iran conflict continued to weigh on prices. Even so, motor fuel costs rose at a slower pace, advancing 5.34% compared with 6.67% in the previous month. In contrast, inflation moderated slightly for transportation (4.05% vs. 4.15%) and education (6.36% vs. 6.41%).
