VOLVER

1. Prices slow in April, but food and medicine price inflation keeps rising

Brazil’s official inflation, measured by the IPCA, rose 0.67% in April 2026, indicating a slowdown compared to the 0.88% recorded in March. According to data from IBGE, the index has accumulated 2.60% in the first four months of the year and reached 4.39% over the past 12 months.

Despite the monthly deceleration, the Food and Beverages (1.34%) and Health and Personal Care (1.16%) groups continue to weigh on consumers’ budgets. In the health category, the impact came from the annual adjustment of up to 3.81% in medication prices, authorized at the beginning of the month. The situation keeps the market on alert: the latest Boletim Focus raised the inflation projection for the end of 2026 to 4.91%.

CNN: Inflação desacelera para 0,67% em abril; alimentos e remédios pressionam

2. Gasoline drives inflation in the US as CPI rises 0.6% in April

The Consumer Price Index (CPI) in the United States increased by 0.6% in April 2026, driven mainly by higher energy prices. According to the Bureau of Labor Statistics (BLS), the sector accounted for more than 40% of the monthly increase, with gasoline prices jumping 5.4%. Over the past 12 months, the index reached 3.8%, exceeding market expectations of 3.7%.

In addition to fuel, housing costs (0.6%) and food prices (0.5%) also contributed to upward pressure. The energy index recorded a significant increase of 17.9% over the one-year period. Core inflation, which excludes volatile items such as food and energy, rose 0.4% in the month and 2.8% year-over-year, reaching its highest level since last September. The data reinforce a scenario of persistent inflation in the US economy, challenging expectations of a slowdown and keeping the Federal Reserve under close watch regarding the maintenance of interest rates.

Exame: CPI: inflação dos EUA sobe 0,6% em abril, puxada pela gasolina

3. Brazilian retail reaches historic level with growth in March

Retail sales in Brazil grew 0.5% in March 2026, reaching a new all-time high in the series that began in 2000. According to data from the Monthly Survey of Commerce (PMC), released by IBGE on Wednesday (13), the sector recorded its third consecutive monthly increase, accumulating a 2.4% rise in the first quarter of the year. Compared to March 2025, growth was 4.0%, marking the 12th straight month of year-over-year expansion.

The positive performance was driven by the information technology and communication (+5.7%), fuels (+2.9%), and personal goods (+2.9%) sectors. On the other hand, supermarkets and the furniture sector posted declines of 1.4% and 0.9%, respectively. Regionally, 19 of the 27 federative units showed positive results, with highlights including Maranhão and Amazonas. Broader retail, which includes vehicles and construction materials, rose 0.3%, signaling a resilient domestic consumption trend despite the high interest rate environment.

Folha de S. Paulo: Vendas no varejo do Brasil sobem pelo terceiro mês seguido e batem recorde, diz IBGE

4. European veto raises fears of an image crisis in Brazil’s livestock sector

Brazil’s livestock sector has expressed strong concern following the recent veto by the European Union on meat imports from the country. The measure, driven by new socio-environmental and sanitary requirements, has raised alarms over the risk of damage to Brazil’s reputation in the global market. Industry representatives fear that the blockade could trigger a “herd effect,” leading other trading partners to question the quality and sustainability of Brazilian production.

Organizations such as ABIEC and ABPA emphasize that the country has made significant progress in traceability protocols, but acknowledge that the European decision is a severe blow to its external image. The current focus is a diplomatic offensive alongside the Brazilian Ministry of Agriculture and Livestock to challenge the criteria behind the embargo. The sector argues that a loss of confidence could cost billions in foreign exchange and threaten Brazil’s leadership in the international protein trade, requiring a swift response to restore credibility among foreign buyers.

Globo Rural: Setor de carnes teme dano à reputação do Brasil após veto da União Europeia

5. Diesel prices fall 4.5% in five weeks

The average price of diesel in Brazil has recorded its fourth decline in a five-week period, accumulating a 4.5% drop over the interval. According to data from the Agência Nacional do Petróleo (ANP) for the week of May 3-9, the average price of S10 diesel closed at R$ 7.24 per liter. The downward trend is attributed to government measures, such as subsidies for producers and importers and federal tax exemptions (PIS/Cofins), as well as pricing strategies by Petrobras aimed at avoiding sharp price pass-throughs.

Despite the recent relief, fuel prices remain at elevated levels due to the effects of the war in Iran, staying 18.9% above pre-conflict levels. The decline is being closely watched with optimism by the productive sector, since diesel directly impacts freight costs and, consequently, food inflation. However, the market remains alert due to Brent crude oil volatility, which continues to trade above US$ 100 globally.

Agência Brasil: Óleo diesel cai pela 4ª vez em cinco semanas e acumula recuo de 4,5%