FX.co ★ Brazil Inflation Rate Edges Higher in June

In June 2025, Brazil witnessed a slight rise in its annual inflation rate, reaching 5.35%, up from 5.32% in May. This marks the ninth month running where inflation has surpassed the central bank's target ceiling of 4.5%. Several sectors experienced a quickening in price increases, notably transportation (5.11% compared to 4.64%), housing (5.30% compared to 4.53%), communication (2.16% compared to 1.96%), and clothing (4.68% compared to 3.92%). However, inflation rates decelerated in other areas such as food (6.66% down from 7.33%), healthcare (5.16% down from 5.66%), personal expenses (5.81% down from 5.87%), education (6.21% down from 6.27%), and household items (2.66% down from 2.77%). Monthly, consumer prices saw a minor increase of 0.24% in June, slightly down from a 0.26% rise in May. The introduction of the Red Flag Level 1 tariff in June, which added BRL 4.46 to electricity bills for each 100 kWh consumed, led to a 2.96% rise in residential electricity prices, representing the largest upward contribution. Conversely, food prices decreased by 0.18%.