FX.co ★ Brazil Inflation Slows to 16-Month Low in December

In December 2025, Brazil’s annual inflation rate decreased to 4.26%, down from 4.46% in November, hitting its lowest level since August 2024 and coming in just under market predictions of 4.30%. The most significant price increases were observed in the housing sector (6.79%), with education (6.22%), personal expenses (5.87%), and health and personal care (5.59%) following closely. Notably, inflation in food and beverages eased considerably to 2.95%, compared to 3.88% in the previous month. Residential electricity costs soared by 12.31% throughout 2025, largely due to tariff adjustments and the implementation of all tariff flags over the year, making it the single most impactful subcategory. Conversely, prices for household articles experienced deflation, decreasing by 0.28%. On a month-to-month basis, consumer prices increased by 0.33% in December, up from the prior month’s 0.18%, though slightly under the anticipated 0.35%.