FX.co ★ Brazil Producer Inflation Hits 2-Year High

Brazil’s producer prices rose 2.63% in April 2026 compared with the previous month, up from a 2.28% increase in March and marking the sharpest monthly gain since March 2022. Prices advanced in 21 of the 24 industrial activities surveyed. Chemical products recorded the largest increase, jumping 9.91% amid disruptions to petrochemical supply chains and higher naphtha costs linked to tensions in the Middle East. Prices for rubber and plastic products climbed 7.31%, reflecting more expensive petrochemical inputs, while prices in oil refining and biofuels rose 6.44% on the back of higher diesel and ethanol prices amid concerns over the Strait of Hormuz. Extractive industries also remained a key source of inflationary pressure, with prices up 4.92%. On a 12‑month basis, producer inflation accelerated to 1.07%, reversing the 1.63% decline recorded in March.