Brazil's Food Inflation Slows Down, Government Credits Support for Family Farming

Strategic Insights -

Brazil's food inflation, which had been a concern in recent months, has slowed down significantly in June, according to the Ministry of Development and Social Assistance, Family and Fight against Hunger. The National Consumer Price Index (INPC) rose 0.23%, with food prices falling 0.18%. This decline in food inflation is attributed to measures coordinated by the Brazilian government, including support for family farming and the encouragement of local production of inputs such as corn. The government's efforts to stabilize prices and protect the population's purchasing power have been effective, with 16 of the 17 monitored capital cities seeing a reduction in the cost of basic food baskets.

Key Takeaways:

  • The National Consumer Price Index (INPC) rose 0.23% in June, with food prices falling 0.18%.
  • The decline in food inflation is attributed to measures coordinated by the Brazilian government, including support for family farming and the encouragement of local production of inputs such as corn.
  • 16 of the 17 monitored capital cities saw a reduction in the cost of basic food baskets, directly benefiting Brazilian families.
  • The government has implemented rural credit policies and investments in logistics infrastructure to balance supply and demand in the domestic market.
  • The decline in food inflation represents an important victory for Brazilian public policies, demonstrating the government's ability to address structural challenges and ensure the population's access to quality food at fair prices.
  • Minister Wellington Dias attributes the improvement to a combination of factors, including support for family farming, encouragement of local production, and government policies to stabilize prices and protect the population's purchasing power.

Statistics:

  • Food prices fell 0.18% in June.
  • The National Consumer Price Index (INPC) rose 0.23% in June.
  • 16 of the 17 monitored capital cities saw a reduction in the cost of basic food baskets.
  • The cost of items such as meat, eggs, rice, and beans became more affordable.
  • Between April and June 2025, there was a reduction in the cost of basic food baskets in 16 of the 17 monitored capital cities.

Sources:

  • Ministry of Development and Social Assistance, Family and Fight against Hunger (gov.br/mds/pt-br)
  • Inter-Union Department of Statistics and Socioeconomic Studies (Dieese)