Monthly inflation rate and central bank interest rate in Brazil 2018-2024

Brazil's inflation rate exhibited significant volatility between January 2018 and July 2024. From January 2018 to May 2020, it fluctuated between 1.88 and 4.94 percent. A gradual increase followed, peaking at 12.13 percent in April 2020. The rate then began a downward trend, reaching 3.16 percent in June 2023, before rising again to 4.61 percent in August 2023. In 2024, inflation decreased monthly until April, hitting 3.69 percent, after which another inflationary period began.

Concurrently, the Central Bank of Brazil adjusted its Selic rate (the official interest rate) in response to these economic shifts. Between February 2021 and August 2022, the bank implemented regular rate hikes, setting the Selic at 13.75 percent in August 2022. This rate held steady until July 2023, after which a series of cuts began. By April 2024, the Selic stood at 10.75 percent, followed by a further reduction to 10.5 percent in May 2024.