Brazil’s annual inflation rate eased to 4.44% in July 2026 from 4.64% in June, matching market expectations and returning to the central bank’s target range of 1.50%–4.50%. Price increases slowed across several key categories, including food and beverages (3.40% vs. 3.82% in June), clothing (3.87% vs. 3.99%), transport (3.64% vs. 3.95%), health and personal care (6.16% vs. 6.21%), personal expenses (5.22% vs. 5.79%), and education (6.27% vs. 6.33%).
The moderation in transport costs was partly driven by a deceleration in fuel prices, with fuel inflation softening to 4.43% from 5.28%, as global oil prices pulled back from recent highs amid renewed prospects for a US–Iran peace agreement and a normalization of supply from the Middle East. On a monthly basis, consumer prices rose 0.1%, after a 0.2% gain in June, while inflation reached 3.44% in the year to date.
