Cost of Living in Brazil in 2026: A Practical Guide for Expats

São Paulo, Brazil — Anyone planning to live in Brazil in 2026 should be prepared for a country that combines economic stability with relatively high everyday costs. While inflation is easing and interest rates are expected to decline, the cost of living remains a key factor for expatriates considering relocation or long-term residence.

This report breaks down what expats need to know about inflation, housing, income, and daily expenses in Brazil in 2026, based on official data and market expectations.

Inflation in Brazil: What Expats Should Expect in 2026

According to projections compiled by the Central Bank of Brazil’s Focus Report, consumer inflation (IPCA) is expected to remain close to 4.0% in 2026, near the upper limit of the official inflation target range.

For expats, this means that prices for essentials — including groceries, utilities, transportation, and personal services — are likely to continue rising, though at a slower and more predictable pace than in previous years. Inflation is no longer accelerating, but it is still high enough to affect monthly budgets.

Interest Rates and the Cost of Credit

Brazil continues to operate with one of the highest interest rates in the world. After ending 2025 with the Selic rate at 15%, economists expect gradual cuts throughout 2026, with the benchmark rate likely to finish the year between 12.0% and 12.25%.

For expatriates, this has direct implications:

• Mortgages and personal loans remain expensive

• Credit card interest rates are extremely high

• Financing property or vehicles locally can be costly

Many expats rely on foreign savings or international financing to avoid Brazil’s high domestic borrowing costs.

Housing Costs: Rent and Property Prices

Housing remains the largest expense for most expats living in Brazil’s major cities such as São Paulo, Rio de Janeiro, Brasília, and Florianópolis.

Market projections indicate that housing prices and rents may rise between 6% and 10% in nominal terms in 2026, driven by:

• Limited housing supply in prime neighborhoods

• Inflation-adjusted rent contracts

• Strong demand in urban centers

Expats renting in desirable areas should expect housing to consume a significant share of their monthly income, particularly in cities with strong job markets or tourist appeal.

Monthly Cost of Living in Brazil for Expats

While official government agencies do not publish a single “cost of living” figure, widely used private estimates suggest the following averages:

• Single expat: around US$19,000–20,000 per year

• Family of four: over US$40,000 per year, depending on lifestyle and city

• In local currency, monthly expenses for a middle-class family in large cities can exceed R$13,000

These figures typically include housing, food, transportation, utilities, healthcare, and leisure, but exclude international school tuition, which can significantly raise costs for families.

Income, Jobs, and Purchasing Power

Brazil’s economy is expected to grow by 1.7% to 1.8% in 2026, reflecting modest but stable expansion. Analysts project real household income growth of close to 4%, supported by a relatively strong labor market.

For expats earning in foreign currency — such as US dollars or euros — Brazil can remain attractive, especially if the exchange rate stays around R$5.50 per US dollar. However, those paid in local currency may still feel pressure from high prices in housing and services.

Fiscal Risks and Long-Term Outlook

Brazil’s fiscal situation continues to influence the cost of living. Public debt is expected to remain above 70% of GDP, limiting the government’s ability to stimulate the economy without increasing inflation or interest rates.

For expats, this reinforces a key reality:

Brazil in 2026 is economically stable, but structurally expensive, particularly for services and credit.

Bottom Line: Is Brazil Affordable for Expats in 2026?

Brazil offers a high quality of life, diverse cities, and a vibrant culture — but affordability depends heavily on income source and location.

Key takeaways for expats:

• Inflation is stable but still noticeable

• Interest rates remain high

• Housing is the main cost pressure

• Foreign-currency earners are better positioned

• Careful budgeting is essential

For expats planning a move in 2026, Brazil remains an attractive destination — but not a low-cost one.

Brazil’s Inflation Hits Six-Year Low as Public Perception Remains Deeply Split, New Data Shows

Brazil posted its lowest November inflation rate since 2018, signaling positive momentum for the economy, but new survey data reveals a country sharply divided between optimism and financial stress.

Brazil’s official inflation index (IPCA) rose 0.18% in November, slightly below market expectations and marking the lowest figure for the month in six years. Year-to-date inflation reached 3.92%, while the 12-month rate stood at 4.46%, safely under the central bank’s 4.50% upper target. Economists view the result as one of the most encouraging signs for price stability in 2024.

The main drivers of inflation remain non-tradable services, such as education, health care, haircuts, and parking, sectors heated by a historically tight labor market. Brazil’s unemployment rate is now 5.4%, its lowest level in years. Meanwhile, inflation for tradable goods continues to ease, supported by a stronger Brazilian real earlier in the year and six consecutive months of falling in-home food prices.

Still, political volatility has weighed on financial assets. Discussions around a potential presidential bid by Flávio Bolsonaro triggered a sharp reaction in markets: the exchange rate jumped from R$5.30 to R$5.50, and long-term interest rates spiked. A weaker currency increases the cost of imported goods, potentially pressuring inflation in 2025.

Upcoming decisions from the Brazilian central bank’s COPOM and the U.S. Federal Reserve add more uncertainty. A possible Fed rate cut, expected at 0.25 percentage points, may weaken the U.S. dollar and reduce the massive interest rate gap between the two countries, a shift widely viewed as favorable for Brazil.

---

Survey Reveals a Country Split Between Anxiety and Optimism

New findings from the Ipsos Cost of Living Monitor 2025 highlight the paradox of Brazilian public sentiment.

According to the survey, 35% of Brazilians say they are in a difficult or very difficult financial situation, well above the global average of 27%. Yet the same 35% believe their income will increase next year, making Brazilians more optimistic than most of the world.

The divergence between perception and economic indicators is striking. Brazil is the only country among the 30 surveyed where the population blames high interest rates, not global conditions or national policies, for personal financial hardship. This reflects a cultural reality: Brazilians strongly associate financial pressure with the cost of installment plans and consumer credit.

Confusion over broader economic conditions is also clear. 36% of Brazilians believe the country is in a recession, even though Brazil has not entered a technical recession since 2020. Meanwhile, 66% expect interest rates to rise next year, despite forecasts showing the opposite.

Brazil’s unemployment rate stood at 5.6% in the three-month period ending in September, according to the IBGE’s continuous household survey. This marks the third consecutive quarter at 5.6%, matching the lowest rate ever recorded since the indicator began in 2002. A year earlier, the rate was 6.4%.

In total, 6.45 million people were unemployed, the lowest level in the historical series. This represents a 3.3% drop compared to the previous quarter and an 11.8% decrease relative to the same period in 2024. The IBGE also reported a record number of formal jobs, with 39.2 million workers holding signed work contracts.

Total real income reached R$ 354.6 billion, another record, with 5.5% annual growth.

These record lows in unemployment levels, record income, and record formal employment contrasts with earlier predictions that Brazil was heading toward an economic “abyss.” Those predictions, made by economists mostly linked to the Brazilian financial market and also to the country's right-wing candidates, especially those who want Tarcísio de Freitas as president in 2027, have been getting their predictions about the country wrong for years. In this case, 2025 was no different.

The year of 2025 in Brazil was marked by stock market highs, a stable exchange rate, and criticism of political narratives that predict national collapse of an economy that is functioning reasonably well.

Thus, the Ipsos survey indicates that this blend of caution and hope reveals a deeper pattern: Brazilians often expect the macroeconomy to worsen — perhaps because they spend the entire year listening to catastrophic predictions for the national economy in the mainstream media —, even as they believe their own lives will improve. But until lower interest rates and tax changes show up — the country implemented a major tax reform this year — in household budgets, the gap between perception and economic data is likely to persist. 

Cost of living in Brazil: beef and gasoline prices soar

Completely insensitive to the difficulties of the poorest population, currently half of the Brazilian population with R$ 413,00 per month (about 100 dollars), the Minister of Agriculture, Tereza Cristina, told the website Poder360 that the "Brazilian consumer should get used to the increase. in the price of meat in recent months ". The high of this product since January 2019 was 5% to 26%, depending on the cut of meat.

The rising price of meat is being produced mainly due to rising Chinese demand, mainly after the swine fever led to the loss of 40% of the country's pork herd. For this reason, China started to buy more beef from many countries, including Brazil. This helped drive up prices.

Another central product for any economy that is experiencing high prices is gasoline. In recent weeks Petrobras has authorized a series of increases in the price of gasoline in refineries.

To make matters worse, the rise in the dollar price should also increase the prices of medicines in Brazil. This is because countless medications, although produced in Brazil, use imported inputs. The high dollar will make these inputs more expensive. As a result, laboratories will be under pressure on costs and will certainly pass on the dollar increase to consumers.

The US currency is on the rise after Brazil's Economy Minister Paulo Guedes said the advance of the US currency is not a concern. The US currency, in recent months, jumped from R$ 3.70, July 18, to R$ 4.24, on November 26, and has remained at that level since then.

Cost of living in Brazil: IPCA grows only 0.19% in July

According to the IBGE, the July Extended National Consumer Price Index (IPCA) varied 0.19%, 0.18 percentage points (pp) above the June result (0.01%). This was the lowest IPCA for the month of July since 2014, when it stood at 0.01%. The accumulated variation in the year was 2.42% and, compared to the last 12 months, the index fell to 3.22%, below the 3.37% recorded in the immediately preceding 12 months. In July 2018, the rate was 0.33%.

The sector that had the biggest increase in prices was housing, whose variation was 1.20%. The reason for this increase was the increase in electricity prices, which, on average, was 4.48% more expensive. Food and beverages were virtually unchanged, with prices rising by 0.01%.

In the accumulated 12-month period through July, the IPCA increased by 3.22%, against 3.37% in the previous month. Reuters poll pointed out analyst expectations were up 0.24% in July, accumulating 12-month advance of 3.28%

Cost of living in Brazil: health insurance prices rise 382% in 18 years

The price of individual health plans rose 382% in 18 years in Brazil. According to a survey by the Institute of Applied Economic Research (Ipea), between 2000 and 2018, the price of individual health insurance in Brazil grew more than double the rate of health sector inflation in the period, which was 180%. The Ipea evaluates that the National Health Agency (ANS) completely failed in the attempt to regulate the service. Ipea also proposes a new calculation methodology that considers the National Broad Consumer Price Index (IPCA) as a reference for the adjustment.

In an official statement, the National Agency for Supplementary Health (ANS) said that "it considers technically inadequate the comparisons made [by IPEA] between the index of readjustment of individual health plans and consumer price indexes, whether general, such as the IPCA, or specific".

Currently, according to ValorInveste website, Brazil has about 47 million beneficiaries of private health insurance. Over the past three years, more than three million people have stopped having health care plans because of rising unemployment and falling incomes.

Cost of living increases for the poorest in São Paulo

O custo de vida em São Paulo, a maior cidade do Brasil, aumentou 5,10% para a população mais pobre no primeiro trimestre de 2019. For the richer classes, the increase in the cost of living in the same period was 3.67%.

The Cost of Living Index (ICV) in the city of São Paulo, which is calculated by the Department of Statistics and Socioeconomic Studies (Dieese), indicated an increase in the cost of living after analyzing the prices of 10 groups, including food, transport, recreation, personal expenses. Among them, food and transportation had the highest increases, with 1.36% and 1.26% respectively.

Meanwhile, preview inflation in Brazil accelerated to 0.72% in April, the highest for that month since 2015. The number surpassed expectations. For example, a Reuters survey with Brazilian economists estimated a 0.69% rise for the same period.

On the other hand, the Consumer Price Index (CPI) index of the Institute for Economic Research (FIPE) increased by 0.29% in April and accumulated inflation of 1.93% in the first four months.

Cost of living in Brazil: inflation accelerates

Brazil's Broad Consumer Price Index (IPCA) rose from 0.43% to 0.75% between February and March 2019, according to IBGE data. This is the 4th consecutive high of inflation and the highest index for March since 2015.

Therefore, the IPCA closed the month of March with a rise of 0.75%, which is above the top of the market estimates, which were between 0.50% and 0.70%.

As a result, the IPCA accumulated in 12 months jumps from 3.89% (well below the target of 4.25% to 4.58% (well above the target)

The item that had the highest growth was gasoline, which rose 2.99% and accounted for 0.12 percentage points of the inflation indicator.

Tomato and bean prices were the highest among food items. The tomato increased by 31.84% in the monthly comparison. Beans racked up 105 percent of the growth in its prices in the first quarter.

Brazilian economy will only grow again in 2020, say businessmen

Brazil's business sector no longer believes that the country will grow again in 2019. According to José Carlos Martins, president of (CBIC (Brazilian Chamber of Construction Industry, in Portuguese, Câmara Brasileira da Indústria da Construção), the confrontations between the president of the Republic Jair Bolsonaro and the president of the Chamber of Deputies, Rodrigo Maia, are bad for the economy. According to Martins, "people take their foot off the accelerator, not to say they put their foot on the brake."

According to the Getúlio Vargas Foundation (FGV), the General Price Index - Market (IGP-M) increased 0.01% in January, a percentage higher than the one reached in December, when it varied -1.08%. As a result, the index accumulated a high of 6.74% in 12 months.

Meanwhile, the lack of capacity of Brazilian companies in the chemical sector, according to Fernando Figueiredo, chief executive of Abiquim (Brazilian Chemical Industry Association), stood at 23%. Simultaneously, the average idleness of Brazilian industry is 26%, according to FGV.

As the Brazilian economy continues to operate with a high level of idleness, the tendency is to maintain the high unemployment rate.

As the Brazilian economy continues to operate with a high rate of idleness, the tendency is the permanence of the high rate of unemployment in the country. Due to this environment of economic deceleration, the number of Brazilians without work reached a new record: 65 million people.

These 65 million are people of working age, but who are not working or looking for work. These are people who, after months of searching and frustration, give up looking for work.

Cost of living in Brazil: beans and potatoes

The rice and beans dish is a combination consumed daily by Brazilians. This dish is now more expensive because beans are now more expensive.

According to the Broad Consumer Price Index (Índice Nacional de Preços ao Consumidor Amplo 15 - IPCA-15), the price of this basic item, which had already registered a 34.56% increase in February, rose 41.44% in March.

This was one of the reasons for the IPCA-E, which is the IPCA-15 accumulated quarterly, to be 1.18%, above the rate of 0.87% registered in the same period of 2018.

Another item that also had a price increase was the potato. The kilo of this product rose 12.39% in February and 25.59% in March.

As a result, previous official inflation in March (IPCA-15) showed a 0.54% increase in prices in relation to the previous month

Cost of living in Brazil in 2019

Inflation has rebounded in Brazil. According to the Brazilian Institute of Geography and Statistics (IBGE), official inflation accelerated to 0.43% in February 2019.

High food prices and school fees were the main factors for the month's high. In 12 months, the accumulated IPCA (National Wide Consumer Price Index) rose to 3.89%. Despite this rise in prices, inflation is below the government's target for 2019: 4.25%.

According to Fábio Romão, an economist at LCA Consultores, fuel prices are expected to pull up in inflation now in March.

The constant crisis produced by the current government and the possible difficulty to approve a profound Pension Reform may make a more moderate inflation picture unlikely.