FX.co ★ Brazil’s Producer Prices Turn Negative in February, Breaking January’s Uptrend

Brazil’s Producer Price Index (PPI) slipped into negative territory in February 2026, signaling a reversal in wholesale price dynamics after a firm increase at the start of the year. According to data updated on 31 March 2026, the PPI fell by 0.25% month-over-month in February, following a 0.34% rise in January 2026.

The month‑over‑month comparison shows that while January’s reading reflected broad-based producer price growth versus December, February’s negative print points to easing cost pressures at the factory gate. The shift from a 0.34% increase to a 0.25% decline suggests a moderation in input price momentum that could, over time, filter through to consumer prices and influence inflation expectations.

With February marking a clear break from January’s upward path, markets and policymakers will be watching subsequent releases closely to determine whether this is a one-off adjustment or the beginning of a more sustained phase of producer price softness in Brazil.