Brazil: Annual Inflation Rises to 8-Month High.

Brazil’s annual inflation rate rose to 4.72% in May 2026 from 4.39% in the previous month, slightly above forecasts of 4.66%, and marking the highest since September 2025. Price pressures intensified for food and beverages (3.87% vs 0.69%), housing (6.22% vs 6.19%), clothing (4.60% vs 4.38%), health and personal care (6.04% vs 5.66%), personal expenses (5.77% vs 5.71%), and communication (1.75% vs 1.59%). Energy and fuel inflation remained elevated at 8.90%, edging up from 8.80% in April, reflecting supply disruptions caused by the closure of the Strait of Hormuz amid the US-Iran conflict. However, motor fuel prices rose at a slower pace, increasing 5.34% compared with 6.67% in the previous month. Meanwhile, inflation eased slightly for transportation (4.05% vs 4.15%) and education (6.36% vs 6.41%).