Brazil July 2026 inflation eases to 4.44%, returns to target range

Brazil's annual inflation rate slowed to 4.44% in July 2026 from 4.64% in June, matching forecasts and moving back inside the central bank's 1.5%-4.5% target range, while the Ibovespa traded below 172,000 after Copom minutes signaled that demand-driven price pressures still call for restrictive monetary policy. Consumer prices rose 0.1% on the month after a 0.2% increase in June, with year-to-date inflation at 3.44%. Earlier details showed easing price pressures across categories including food and beverages, clothing, transport, health and personal care, personal expenses, and education, while transport inflation cooled in part as fuel-price growth slowed to 4.43% from 5.28% amid softer oil prices. In equities, financial stocks were mostly lower, with Caixa down nearly 3% after reporting a 0.2% quarter-on-quarter decline in adjusted net income and a 0.8% year-on-year drop in financial income. BTG fell more than 2% despite posting its strongest semester on record, B3 slipped 0.3% ahead of results, Petrobras lost nearly 0.5% as the oil rally faded, and Vale rose more than 0.5% as iron ore prices gained on signs of tighter supply.

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