Brazil's Inflation Cools Slightly in May

Brazil's Inflation Rate Slows in May 2025 Brazil's official inflation rate, the IPCA, saw a slight increase of 0.26% in May 2025, according to data released by the IBGE (Brazilian Institute of Geography and Statistics). This marks a decrease from the 0.43% increase in April, indicating a potential slowdown in inflation. The rise was primarily attributed to a 1.19% increase in housing costs, with residential electricity prices rising sharply due to the yellow flag tariff system. Despite this, other sectors showed more moderate increases, helping to keep the overall inflation rate relatively low. "The result represents a drop of 0.17 percentage points compared to the previous month," stated a spokesperson for the IBGE. The 12-month inflation rate currently stands at 5.32%, exceeding the government's target. However, the recent slowdown suggests that inflationary pressures may be easing. The IBGE's data offers a glimmer of hope for the Brazilian economy, indicating that inflation may be under control. While challenges remain, the recent deceleration provides a positive outlook for the future.