Brazil’s IGP-DI inflation index decelerated markedly in May 2026, rising 0.87% month-over-month after a strong 2.41% increase in April, according to data updated on 9 June 2026. The slowdown signals a significant easing in wholesale and cost pressures within a single month.
Measured on a month-over-month basis, the latest reading shows that while prices continued to rise in May, the pace of inflation lost considerable momentum compared with April, when the index had accelerated sharply from the previous month. The IGP-DI, closely watched by markets as an early gauge of broader price trends, now reflects a more moderate inflation environment heading into mid‑2026.
The shift from 2.41% in April to 0.87% in May will be scrutinized by investors and policymakers assessing whether April’s spike was temporary or part of a more volatile pattern. The May data suggest some relief on the inflation front, potentially easing pressure on long-term interest rate expectations if the trend toward slower price growth is sustained in the coming months.