Indicators

Brazil’s Government Now Sees Inflation Soaring Past Target for Longer on Iran War

A worker checks a payment terminal at a Petrobras gas station in Sao Jose dos Campos, Sao Paulo state, Brazil, on May 11.Photographer: Dado Galdieri/Bloomberg

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By Beatriz Reis

May 18, 2026 at 5:27 PM UTC

Brazil’s Finance Ministry raised its consumer price forecasts sharply and now sees inflation running above target through at least 2027, reflecting the shock from the Middle East war.

The ministry sees annual inflation at 4.5% this December, up from 3.7% before, according to projections published on Monday. Brazil’s consumer price rises will end 2027 at 3.5%, compared to the prior forecast of 3%.