Brazil Inflation Forecasts Surge Above Target on Iran Fuel Shock

Brazil economists raised their 2026 inflation forecast above the central bank’s target ceiling, the latest fallout from the Iran war’s energy shock.

Consumer prices increases will hit 4.71% in December, up from the previous estimate of 4.36%, according to a weekly central bank survey of economists published Monday. That exceeds the 3% target, with a tolerance range of plus or minus 1.5 percentage points. The year-end inflation forecast for 2027 also rose to 3.91%.