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Brazil inflation remains above goal despite softer-than-expected October reading

By Thomson Reuters Nov 12, 2026 | 6:44 AM

SAO PAULO, Nov 12 (Reuters) – Consumer prices in Brazil rose less than expected in the 12 months through October but ​remained above the central bank’s target range, ‌as policymakers vow to keep using high interest rates to rein in persistent inflation.

Annual inflation in Latin America’s largest economy reached 4.63% last month, statistics agency ‌IBGE ​said on Thursday, up ⁠from 4.58% in September ⁠but below the 4.73% expected by economists in a Reuters poll.

• Consumer prices were up 0.14% in October, slowing from 0.82% in ​September; economists had forecast a 0.25% rise

• Monthly inflation was driven by higher food ⁠and beverage prices (+1.04%), while ⁠transport (-0.59%) and housing (-0.51%) costs eased, IBGE ​said

• Brazil’s central bank targets annual inflation at ​3%, plus or minus 1.5 percentage points

• ‌The bank last week paused an easing cycle launched in March, holding its benchmark Selic rate at 13.75% as it grapples with ⁠a worsening inflation outlook

• “A return to monetary easing requires inflation to return to a downwards trend, which will ⁠probably occur ‌from March, as well as ⁠fiscal reform to reduce risk premia,” ​said ‌Capital Economics chief emerging markets economist ​William Jackson

• ⁠President Luiz Inacio Lula da Silva’s reelection last month has fueled a weakening of the Brazilian real while pushing long-term interest rates and inflation forecasts higher

(Reporting by Gabriel Araujo; Editing by ​Chizu Nomiyama )