10.09.202512:54:18UTC+00Brazil Inflation Rate Slows in August

In August 2025, Brazil experienced a slight reduction in its annual inflation rate, which dipped to 5.13% from 5.23% in July, aligning closely with market forecasts of 5.10%. This deceleration was primarily attributed to more moderate price hikes in several sectors, including food and beverages, which recorded an increase of 7.42% compared to 7.44% previously; housing, which saw a rise of 5.03% down from 5.44%; household items, which grew by 1.42%, a notable drop from 2.26%; transportation, which increased by 3.31%, down from 3.60%; and communication, which rose by 1.69%, easing from 1.89%. Conversely, some sectors experienced an uptick in inflation, notably clothing, which climbed to 4.47% from 4.12%; health and personal care, which rose to 5.70% from 5.40%; personal expenses increased to 6.23% from 6.07%; and education, which saw a slight rise to 6.17% from 6.15%. On a month-to-month comparison, consumer prices declined by 0.11%, a reversal from the 0.26% increase observed in July.