Brazil Inflation Rate Slows in August

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Brazil's annual inflation rate eased to 5.13% in August 2025 from 5.23% in July, close to market expectations of 5.10%. The slowdown was driven by softer price increases in food and beverages (7.42% vs 7.44%), housing (5.03% vs 5.44%), household articles (1.42% vs 2.26%), transport (3.31% vs 3.60%), and communication (1.69% vs 1.89%). On the other hand, inflation picked up for clothing (4.47% vs 4.12%), health and personal care (5.70% vs 5.40%), personal expenses (6.23% vs 6.07%), and education (6.17% vs 6.15%). On a monthly basis, consumer prices fell 0.11% after rising 0.26% in July.

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