Brazil’s inflation just crossed a line the central bank really didn’t want it to cross.
The IPCA-15 consumer price preview for May 2026 came in at 0.62% month-over-month, pushing the 12-month rate to 4.64%. That’s above the Central Bank of Brazil’s 4.5% upper target limit, a threshold that hadn’t been breached since October 2025.
Food prices and housing costs drove the overshoot
The culprits behind the inflation spike were painfully tangible for Brazilian households. Food and beverages surged 1.38% in the month, while housing costs climbed 1.03%.
The reading also landed above what analysts had penciled in. Year-to-date inflation through May now sits at 3.02%.
