Electricity and gasoline prices rose in January, causing Brazil’s official inflation for the month of the year to close at 0.33 percent, the same level as in December. In January 2025, the rate was 0.16 percent.

With this result, official inflation—as gauged by the country’s consumer price index IPCA—has reached 4.44 percent over the past 12 months, thus within the government’s maximum tolerance limit.

Notícias relacionadas:

• Brazil’s inflation ends 2025 at 4.26%, within target.
• Brazil’s Central Bank keeps benchmark interest rate at 15% per annum.

Gasoline exerted the greatest upward pressure, accounting for 0.10 percentage points (p.p.) of the index, while cheaper electricity bills accounted for -0.11 p.p.

The data were released Tuesday (Feb. 10) by the statistics bureau IBGE.

Target

The inflation target set by the National Monetary Council (CMN) is three percent, with a tolerance of 1.5 percentage points above or below – i.e., a range of 1.5 to 4.5 percent. Since last November, the IPCA has been within the tolerance limit.

Since the beginning of 2025, the target assessment period has been the previous 12 months, rather than just the end of the year (December). The target is considered unmet if the tolerance range is exceeded for six consecutive months.

Index

The IPCA calculates the cost of living for families with incomes between one and 40 minimum wages. In total, prices are collected for 377 sub-items, including products and services, across ten metropolitan areas in the country.