Brazil’s annual inflation accelerated to 5.06% in February, up from 4.56% in January, driven primarily by a 16.8% rise in residential electricity costs after the Itaipu Bonus expired, which had previously provided bill discounts. Consumer prices surged 1.31% in February, marking the highest monthly increase in three years and the steepest February rise since 2003. This inflation surge exceeded the central bank’s tolerance range, largely affecting household expenses and increasing pressure on President Luiz Inácio Lula da Silva’s administration.