Brazil June inflation hits three-year low for the month, though food prices remain elevated

Food costs fell 0.24% in June, offering a brief respite after May's surge, but annual food inflation remains at 4.56%, well above the central bank's target ceiling.

By Handelsavisen Newsroom · Automated 2026-07-11 00:08 UTC · 1 min read

Brazil's consumer price inflation recorded its lowest monthly reading in three years for June, according to reports from G1 Globo.

The deceleration was driven largely by a reversal in food prices, which declined by 0.24% following a sharp increase in May.

56% over the past twelve months, a rate that substantially exceeds the overall headline inflation figure and sits well above the ceiling of the inflation target set by the Central Bank of Brazil.

This monthly drop provided a temporary relief to households and markets watching for signs of cooling price pressures in the region's largest economy.

Despite the monthly improvement, the underlying inflationary pressure remains significant.

Food prices have risen 4.56% over the past twelve months, a rate that substantially exceeds the overall headline inflation figure and sits well above the ceiling of the inflation target set by the Central Bank of Brazil.

The divergence between the monthly moderation and the persistent annual food inflation highlights the structural challenges in bringing core price growth back to target levels.