Brazil’s consumer prices rose 0.06% in the month to mid-July 2026, a sharp slowdown from the 0.41% increase recorded in June and below market expectations of 0.2%. It was the lowest mid-month inflation reading since August 2025.
The main downward contribution came from food and beverages, which fell 0.66%. Within this category, prices of food consumed at home dropped 1.14%, while prices for food consumed away from home accelerated, rising 0.55%.
Housing exerted the strongest upward pressure, with prices climbing 0.97%. This was largely driven by a 3.03% increase in residential electricity tariffs, following the activation of the yellow tariff flag and regulated price adjustments in several cities.
Transportation prices increased 0.11%. An 11.7% surge in airfares more than offset declines in fuel prices, which eased amid reduced concerns over a potential oil supply crisis in the Middle East.
Health and personal care costs rose 0.28%, driven mainly by higher prices for personal hygiene products. On a 12-month basis, the inflation rate eased to 4.52% from 4.58% in June.
