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- 📉 Inflation U-turn or brief detour?
📉 Inflation U-turn or brief detour?
Inflation defies expectations, coming in below estimates. The PT’s head remains in the sand when it comes to social media messaging. Brazil’s employment paradox.
Gustavo Ribeiro & Euan Marshall
June 10, 2025
INFLATION
Prices cool sharply in May, defying expectations
The Brazilian population (especially low-income households) are highly sensitive to food price variations. Photo: Alf Ribeiro/Shutterstock
Brazilian inflation unexpectedly slowed in May, interrupting what has been a persistent upward trend. Data released this morning by the Brazilian Institute of Geography and Statistics (IBGE) shows that the country’s benchmark 12-month price index fell to 5.32%, down from 5.53% in April. The month-on-month increase for May stood at 0.26%, against a 0.37% median market expectation.
👉 Why it matters. At the heart of the slowdown were two of the economy’s sectors that affect citizens the most: food and transportation. Combined with housing costs, food and transportation make up more than half of the IPCA, Brazil’s headline inflation index.
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