In an open letter, the Central Bank says it will strengthen communication while the IPCA remains above the target.

In its open letter regarding the June 2025 inflation target breach, the Central Bank announced that it will reinforce its communication throughout the period in which the IPCA remains above the target. This reinforcement applies to the reasons for the breach, the measures adopted, and the evolution of the convergence scenario, the agency reported.

"The Central Bank will release a new letter if inflation does not return to the tolerance range within the expected timeframe or if it considers it necessary to update the measures or the expected timeframe for inflation to return to the range," says the letter, published early in the evening.

On Thursday, the 10th, the Brazilian Institute of Geography and Statistics (IBGE) reported that 12-month accumulated inflation reached 5.35% in June – 0.85 percentage points above the target ceiling of 4.50%. This is the first time that the continuous target – valid starting this year and calculated based on the 12-month IPCA – has been breached.

The Central Bank did not say when it expects the IPCA to return to the center of the target of 3%. Instead, it only mentioned that it expects the rate to fall below the tolerance range at the end of the first quarter of 2026.