Brazil Inflation Rises to 4.58%, Above 4.5% Ceiling
Brazil’s 12-month inflation climbed to 4.58% in September, above the 4.5% ceiling, as electricity bills jumped. Here is what it means for rate cuts. The post Brazil Inflation Rises to 4.58%, Above 4.5% Ceiling appeared first on The Rio Times .
Brazil's official inflation rate rose to 4.58% in the 12 months to September, surpassing the 4.5% target ceiling. The IPCA index increased by 0.82% in September, marking the highest monthly figure since March 2026, when prices rose 0.88%. Key drivers of the rise include a 7.98% increase in electricity prices following the end of the Itaipu bonus, a discount on power bills, and significant jumps in the prices of tomatoes and potatoes, up 37.76% and 24.07% respectively.
Inflation in 2026 is projected to end at 5.01%, according to a Focus survey conducted on October 5. The next Central Bank meeting is scheduled for November 4, and market predictions indicate a 25 basis point cut at this meeting, with a 86.5% chance according to Polymarket and a 24% chance on Kalshi.
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