Brazil's Official Inflation Slows to 0.14% in October

The IPCA rose 0.14% in October 2026. This official data from the IBGE came in lower than the 0.26% increase projected by analysts. Over the last twelve months, the index reached 4.63%.

Food and beverages exerted the most pressure on the index with a 1.04% rise. Items such as tomatoes, onions, rice, and meat saw significant price hikes. The institute attributed part of this trend to heavy rains that disrupted food supply in rural areas.

Conversely, the transport and housing groups recorded declines of 0.59% and 0.51%, respectively. The drop in electricity bills was driven by the shift to the green tariff flag. Airfares and gasoline prices also helped ease the cost of living for the month.

Diesel and ethanol costs followed an opposite path to other fuels by recording increases. Higher diesel rates drove up operational expenses for businesses and were ultimately passed on to the final consumer.

The cooling of inflation in October may reduce pressure on the Central Bank to further hike the base interest rate, which tends to influence the performance of the Ibovespa.