Brazil Inflation Slows Closer to Target, Making Way for Cuts

Brazil’s annual inflation eased in December, closing 2025 within the central bank’s target range and increasing the likelihood of interest rate cuts in the coming months.

Official data released Friday showed consumer prices rose 4.26% from the year prior, in line with the median estimate of analysts surveyed by Bloomberg. It’s the lowest year-on-year print since August 2024. On the month, inflation reached 0.33%.