Brazil Inflation Hits 0.88% in March as Fuel and Food Surge

Overview

• Brazil’s official IPCA index, released Friday by the IBGE, rose 0.88% in March and 4.14% over 12 months, topping most forecasts.
• Transport and food drove about 76% of the increase, with gasoline up 4.59% and diesel up 13.90%, which raised freight costs and fed through to grocery prices.
• IBGE’s price manager tied the jumps to the Middle East conflict and talk of limits at the Strait of Hormuz, while Petrobras raised diesel to distributors by R$0.38 per liter.
• Following Friday’s inflation surprise, futures tied to local interest rates rose as economists signaled a slower pace for Selic cuts, with many now expecting another 0.25‑point move.
• The federal government announced a R$30.5 billion package to curb cost pressures, and markets later saw the dollar slip to R$5.01 and the Ibovespa set a record as geopolitical tensions showed modest signs of easing.