FX.co ★ Brazil's Inflation Accelerates on Transport and Food Costs

Brazil’s annual inflation rate rose to 4.14% in March 2026, up from 3.81% in February and slightly above market expectations of 4.0%. Price pressures strengthened in food and beverages (2.16% vs. 1.76%) and transport (3.69% vs. 2.49%). The transport category was particularly affected by a sharp increase in vehicle fuel prices (4.32% vs. 0.32%), driven by the oil and gas supply disruption caused by the conflict in the Middle East and the closure of the Strait of Hormuz. Inflation eased slightly in some other categories, such as clothing (4.90% vs. 5.04%). On a monthly basis, the consumer price index (CPI) advanced 0.88% in March, following a 0.70% increase in February.