Brazil’s inflation slows down to 0.14% in October

Brazil's official inflation rate slowed to 0.14 percent in October, marking a significant drop from 0.82 percent in September. This relief for households can be attributed to a green tariff on electricity bills and lower transportation costs. Throughout the past year, the country's consumer price index IPCA has reached 4.63 percent, surpassing the government's target.

The data was published by the statistics bureau IBGE on Thursday, November 12. Brazil's Central Bank maintains a benchmark interest rate of 13.75 percent per year. The market estimate for October's IPCA was 0.27 percent, lower than the official figure. The Ministry of Finance forecasts an IPCA of 4.9 percent by the end of 2026, while the National Monetary Council aims for a 3 percent target with a 1.5 percentage points tolerance.

Since the start of 2025, the target assessment period has covered the previous 12 months. October marks the second consecutive month with inflation above the ceiling, with the year-to-date rate reaching 4.58 percent in September. Housing prices played a significant role in reducing inflation, with a sharp decline of -0.51 percent due to a shift in electricity prices from yellow to green, eliminating an additional charge.

Transportation costs also contributed to the decline, with airfare prices dropping by 9.21 percent and fuel prices falling by 0.31 percent. Meanwhile, food prices rose by 1.04 percent, with the home food segment increasing by 1.31 percent. The IPCA measures the cost of living for households with incomes between one and 40 minimum wages, collecting data in ten major metropolitan regions across Brazil.