Brazil: Mid-Month CPI Rises More Than Expected in May.

Consumer prices in Brazil rose 0.62% month-on-month in the first half of May 2026, slowing from 0.89% in April but exceeding forecasts of 0.53%. Among the nine categories surveyed, food and beverages posted the largest increase, rising 1.38%, with at-home food prices up 1.73%, led by potatoes (26.29%), tomatoes (12.97%), long-life milk (6.07%), and meat (1.98%). Housing costs rose 1.03%, mainly due to a 2.16% increase in residential electricity prices following the return of the yellow tariff flag. Health and personal care advanced 1.05% as pharmaceutical products climbed 1.25% after authorized medicine price adjustments. Transport was the only category to decline, falling 0.33%, as ethanol, diesel, and gasoline prices dropped. Regionally, Goiania recorded the highest inflation rate at 1.41%, while Brasilia posted the lowest at 0.33%. On an annual basis, prices increased 4.64%.