The Brazilian Ministry of Finance celebrated the official inflation result for 2025. The Broad National Consumer Price Index (IPCA) ended the year at 4.26 percent, within the target system and marking the fifth-lowest rate recorded since 1995, the start of the Real Plan, as announced on Friday (Jan. 9).

The ministry’s executive secretary, Dario Durigan, who is serving as acting Minister of Finance during Fernando Haddad’s vacation, said the result consolidates a scenario of greater economic stability and reinforces the government’s goal of delivering the lowest accumulated inflation of a presidential term since the creation of the Real.

Notícias relacionadas:

• November’s 0.18% inflation brings rate back to target.
• Brazilian economy grows 0.1% in third quarter.

“The 4.26 percent rate is the lowest IPCA since 2018. But in 2018, unemployment was at 11.6 percent. Now it’s at 5.2 percent. We are delivering low inflation and low unemployment,” stated Durigan in a social media post.

Another point highlighted by Durigan was the more moderate behavior of food prices, which rose by 1.43 percent during the year, contributing to the slowdown in the overall index. In the food and beverage group, inflation stood at 2.95 percent, well below the 7.69 percent recorded in 2024.

“With the economic and fiscal stability that we have restored to Brazil, we are reaping strong GDP growth, low unemployment, increased real labor income, and declines in poverty, extreme poverty, and inequality. Make no mistake: 2026 will be no different!” he declared.

In 2025, official inflation remained below the target ceiling of 4.5 percent, amid a contractionary monetary policy stance, with the benchmark interest rate at 15 percent per year, the highest level since 2006.

Planning

The Minister of Planning, Simone Tebet, also celebrated the result. In a social media post, she highlighted the positive impact of the slowdown in prices on the cost of living for the population.

“As important as staying within the target is the low inflation for the item that matters most: food. Less than half of the 2024 level. More food on the table for Brazilians, who saw a real increase in the minimum wage,” she added.