2026.03.3112:52:20UTC+00Brazil's Producer Prices Fall in February

Brazil’s producer price index (PPI) fell 0.25% month-on-month in February 2026, with prices declining in 13 of the 24 industrial sectors surveyed. Food products led the overall drop for the 10th consecutive month, down 0.87%, followed by extractive industries (-0.61%), petroleum refining (-0.50%), and chemicals (-0.26%).

The motor vehicles sector, which had posted eight straight months of increases, reversed course with a 0.68% decline. On the upside, the strongest advances were recorded in electrical equipment (+1.73%), perfumery and personal care products (+1.44%), metallurgy (+1.41%), and apparel (+1.32%).

The broad-based declines reflect subdued demand and lower input costs, even as selected segments of durable goods and essential consumer staples continue to show price resilience. Geopolitical uncertainty and elevated interest rates are still weighing on firms’ pricing power.

The central bank’s recent reduction of the Selic policy rate may underpin a gradual recovery in industrial prices, but a more robust and sustained uptrend will depend on firmer household consumption and more predictable energy costs—both still in question amid ongoing tensions in the Middle East.

On a 12-month basis, the PPI fell 4.47%, while in the year to date it edged up 0.07%.