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Weekly Report - 12 February 2026 (WR-26-06)

BRAZIL: Inflation tempers optimism over imminent rate cuts

The national statistics institute (Ibge) reported on 10 February that Brazil’s monthly inflation rate stood at 0.33% in January while annual inflation rose to 4.44%. While authorities have not expressed significant concern over the latest acceleration of annual inflation, analysts cited in the media have highlighted the importance of monitoring the prices of products such as fuel and food products. Significant monthly increases in prices of these products could dampen the public mood ahead of the presidential and congressional elections in October and make the central bank (BCB) think twice about its imminent cycle of interest rate cuts, which are expected to begin in the coming months.

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