Mucahithan Avcioglu
10 April 2026•Update: 10 April 2026
Brazil’s annual inflation accelerated to 4.14% in March from 3.81% in February, as higher fuel and food prices pushed consumer prices up more sharply in Latin America’s largest economy.
The country’s benchmark IPCA consumer price index rose 0.88% in March, up from 0.7% a month earlier, the Brazilian Institute of Geography and Statistics (IBGE) said on Friday. The year-to-date increase reached 1.92%.
Transport costs rose 1.64% in March and food and beverages increased 1.56%, with the two groups together accounting for 76% of the monthly headline reading, according to the IBGE.
Within transport, fuel prices climbed 4.47%, led by a 4.59% increase in gasoline prices, which was the single largest contributor to monthly inflation. Diesel prices jumped 13.90%, while ethanol rose 0.93%.
Food inflation also gathered pace, with prices for tomatoes, onions, potatoes, long-life milk and meat all moving higher during the month.
Housing costs rose 0.22% in March, including a 0.13% increase in residential electricity prices, reflecting tariff adjustments in Rio de Janeiro, while the green tariff flag remained in place nationally, meaning no extra surcharge for consumers.
The inflation reading comes as Brazil’s central bank navigates elevated price expectations and external uncertainty. In its March decision, the bank cut the benchmark Selic rate to 14.75% but said inflation expectations for 2026 and 2027 remained above the 3% target, which has a tolerance band of 1.5 percentage points.
It also came amid the Iran war, which started on Feb. 28, and disrupted flows through the Strait of Hormuz, a key artery for global crude and LNG trade, resulting in a severe energy shock globally.
