Brasil Taxa De Inflação

The annual inflation rate in Brazil softened to 4.56% in January of 2025 from 4.83% in the previous month, in line with market expectations, to mark the lowest inflation rate since September of last year. Still, the rate remained above the central bank’s upper tolerance band of 4.5%, backing the outlook that the monetary authority will deliver another rate hike in March, as signaled in December. Despite remaining elevated, prices decelerated for food and beverages (7.25% vs 7.69% in December 2024), while costs fell for housing and utilities (-0.36% vs 3.06%), solely due to the impact that one-time energy credits drove deflation for electricity (-13.98% vs -0.37%). In turn, prices rose sharply for (5.32% vs 3.3%). From the previous month, consumer prices edged 0.16% higher, the softest increase for January since 1994.