Business · Economy · 1 day ago
Brazil’s September inflation supports only slow interest-rate cuts, economist says
Brazil’s consumer prices rose 0.82% in September, according to data from the national statistics agency, IBGE.
Economist Helena Veronese said some of the increase came from electricity charges returning and airfares rising, factors she expects to ease.
Prices for industrial goods and some related services slowed, but average underlying inflation rose and services prices picked up again.
Services inflation was 0.61% for the month, and prices for labour-intensive services remained under pressure.
Veronese said the figures support slow cuts to the Selic, Brazil’s benchmark interest rate, but do not justify faster cuts.
Inflation over the past 12 months remains above the government’s target ceiling, while forecasts put inflation at 4.3% next year, near that ceiling.
She also said the economy needs support, noting that half of households are in debt, and expects more consistent easing in services inflation in the not-too-distant future.
Brazil’s consumer inflation rose 0.82% in September, slightly above market expectations, according to data from the IBGE.
Economist Helena Veronese said the figures support continued slow cuts to the Selic interest rate, rather than faster reductions.
She cited inflation over 12 months above the target ceiling and service prices that remain elevated.
Some of September’s increase came from volatile items, including electricity charges and airfares, which may ease in coming months.
Veronese also said the economy needs stimulus, noting that 50% of families are in debt, according to Central Bank data.
- Who
- Economist Helena Veronese assessed the data and its implications for interest rates.
- What
- Brazil’s IPCA inflation rose 0.82% in September. Veronese said the data allows slow Selic cuts but does not support accelerating them.
- When
- September; the article was published on October 10, 2026.
- Where
- Brazil.
- Why
- Inflation over 12 months remains above the target ceiling, and service inflation is still elevated.
This story does not have two clearly opposing sides.
A large part of this higher inflation was due to some factors that will soon drop out of the calculation; they are volatile items.
It allows us to continue having slow cuts in the Selic.
Services inflation is at a level that is still worrying. It is not a calm level, nor one that allows the Central Bank, at this moment, to accelerate the pace of cuts.
Brazil’s IPCA inflation rose 0.82%, while services inflation rose 0.61%.
CNN Brasil published Veronese’s assessment of the inflation data and its implications for Selic cuts.
- September IPCA inflation
- 0.82%
- September services inflation
- 0.61%
- Economist
- Helena Veronese
- Families in debt
- 50%, according to Central Bank data
- Next-year inflation projection
- 4.3% in the Focus report
Sources
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