Brazil’s consumer prices rose 0.84% in the first half of February compared with the same period in the previous month, significantly above market expectations of 0.6% and accelerating from the 0.20% increase recorded in the previous period. This was the sharpest rise in one year.
The main driver was transportation costs, which jumped 1.72% after a 0.13% decline in mid-January, reflecting a 5.39% surge in public transportation fares and a 1.38% increase in fuel prices. Education costs also rose steeply, climbing 5.20% after a marginal 0.05% increase in mid-January.
In contrast, price movements were more in line with typical seasonal patterns for food and beverages (up 0.20% vs. 0.31% previously) and housing and utilities (up 0.06% vs. a 0.26% drop in mid-January).
On an annual basis, consumer prices increased 4.1%, remaining below the Brazilian central bank’s upper inflation target of 4.5% and marking the lowest rate since June 2024.
