Aerial view of Copacabana Beach during the austral winter in Rio de Janeiro, Brazil on July 9, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Rio de Janeiro, Brazil: Inflation in Brazil slowed slightly to 4.64 percent year-on-year, driven largely by falling food and fuel prices, according to official data released Friday.
The easing could provide a boost for President Luiz Inacio Lula da Silva, who is seeking re-election in October, at a time when the cost of living is a key concern for voters.
While inflation slowed from the 4.72 percent recorded in May, it remains above the upper target limit of 4.5 percent.
Monthly inflation stood at 0.16 percent, down from 0.58 percent in May, according to the IBGE statistics agency.
Food prices dropped 0.24 percent in June, led by coffee, fruit and meat.
Fuel costs declined 0.48 percent. However, the Lula administration remains wary of volatility caused by the war in the Middle East.
Government subsidies aimed at curbing pump price hikes were extended this week due to the resumption of hostilities between the United States and Iran.
In mid-June, Brazil's central bank cut its benchmark interest rate for the third time in a row. However, at 14.25 percent it is among the highest in the world -- a source of frustration for Lula who believes high interest rates stifle growth.
