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1. PCA-15 accelerates and exceeds expectations in May, amid high in prices of food

The Extended National Consumer Price Index-15 (IPCA-15) rose by 0.62% in May 2026, surpassing market projections that had estimated a 0.53% increase. According to data from the Brazilian Institute of Geography and Statistics (IBGE), the index accumulated 4.64% over the past 12 months, also above expectations. The main driver of this acceleration was the food and beverage group, which increased by 1.38% and contributed 0.30 percentage points to the overall index, with a notable 1.73% rise in items consumed at home.

In contrast, the transportation sector recorded a deflation of 0.33%, exerting a negative influence on the index after the sharp increase observed in April. This decline was driven by a significant drop in fuel prices, which fell by 1.47% in the month; specifically, ethanol decreased by 2.73% and gasoline dropped by 1.32%. While the cost of food consumed away from home also slowed slightly to 0.51%, the overall scenario points to more persistent inflationary pressure than analysts had anticipated.

InfoMoney: IPCA-15 sobe 0,62% em maio, acima do esperado pelo mercado
Valor Econômico: Mercado eleva previsão de alta do IPCA de 2026 de 4,92% para 5,04%, mostra Focus

2. Chamber of Deputies approves constitutional amendment allowing the end of the 6×1 work schedule

The Chamber of Deputies approved a Proposed Constitutional Amendment (PEC) that enables the end of the six-days-on, one-day-off work schedule. The bill establishes a reduction in the weekly working hours from 44 to 40 and mandates two paid days off per week, preferably on Sundays, to come into effect 60 days after promulgation. The vote was overwhelmingly in favor, with 472 votes to 22 in the first round and 461 to 19 in the second round, maintaining the rapporteur’s opinion, which had already been approved in the special committee.

The transition to the new work schedule will take place in two stages after the PEC is promulgated, with the first two hours reduced within up to two months and the remaining two hours within the following 12 months. The text provides that collective agreements and conventions incompatible with the new rules will automatically lose validity 60 days after promulgation, forcing negotiations between unions and companies. Professionals holding a higher education degree and earning at least two and a half times the INSS ceiling (around R$21,100) will be excluded from the new rules, with the aim of combating “pejotização” (misclassification of employees as contractors) and ensuring flexibility for higher-income individuals. According to economists, the debate should be accompanied by discussions about productivity gains in the country.

G1: Fim da escala 6×1: Câmara aprova PEC; como votaram deputados e partidos nos dois turnos

3. Government formalizes R$0.44 per liter subsidy to curb gasoline price increases

The Federal Government has issued a decree regulating a subsidy of R$0.44 per liter for gasoline producers and importers. The measure is part of an emergency package aimed at mitigating the impact of the surge in international oil prices, driven by conflicts in the Middle East. The subsidy will be paid directly through the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and is intended to cushion the pass-through of external volatility to Brazilian consumers at the pump.

The initiative comes as a temporary response while the National Congress has yet to finalize the approval of bills aimed at stabilizing fuel prices during times of crisis. With an estimated monthly cost of R$1.2 billion, the government argues that the fiscal impact will be offset by increased tax revenues generated by the rise in oil prices itself. The decree also establishes transparency rules, requiring gas stations to disclose the discount directly on the receipt, under penalty of returning the funds with interest in cases of non-compliance or fraud.

G1: Governo publica decreto que fixa em R$ 0,44 subsídio por litro da gasolina

4. Workers can now use FGTS funds to pay off debts

Brazilian workers who have active or inactive FGTS accounts will be able to use their balances to settle or reduce debts renegotiated through the Desenrola Brasil program. The new feature is aimed at Tier 1 of the program, which serves individuals earning up to two minimum wages or those registered in CadÚnico. According to the Ministry of Finance, the measure seeks to expand the range of payment options for indebted citizens, allowing them to use an existing personal resource to clear their names and regain access to credit in the market.

The process of checking and transferring funds must be carried out directly through the official Desenrola Brasil platform, integrated with the FGTS app from Caixa Econômica Federal. To ensure the security of the operation, workers will need to authorize data sharing between the systems before confirming the deduction from their outstanding balance. The government emphasizes that the use of the fund is optional and that traditional withdrawal rules, such as in cases of dismissal without cause or home purchase, remain unchanged for the portion of the balance not used in the negotiation.

Agência Brasil: Desenrola Brasil: uso do FGTS para pagar dívidas começa nesta segunda

5. Industry Confidence index rises in May 2026

The Industry Confidence Index (ICI), measured by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV), rose by 1.1 points in May, reaching 97.1 points, while the three-month moving average increased by 0.1 point, standing at 96.6 points. This growth was driven by improved confidence in 12 of the 19 industrial segments surveyed. According to FGV, the positive result reflects a recovery in perceptions of the current situation, with signs of improvement in demand levels and normalization of inventories after the initial impacts of the conflicts in the Middle East across most sectors.

Although the Current Situation Index (CSI) increased by 2.2 points, reaching 98.7 points, its highest level since May, the Expectations Index (EI) remained relatively stable, rising only 0.1 point to 95.6 points. Business leaders continue to signal caution regarding the coming months due to an uncertain environment that could negatively affect production and business activity. This concern about the future is especially evident in industrial segments related to non-durable consumer goods.

Valor Econômico: Índice de Confiança da Indústria sobe para 97,1 pontos em maio, aponta FGV