Inflation Within Target Spurs Small Business Growth and Collaboration Initiatives in Brazil

Brazil's economic landscape in early 2026 presents promising developments for small businesses, fueled by inflation staying within the Central Bank's target and innovative local business initiatives.

The National Consumer Price Index (IPCA) closed 2025 at 4.26%, the lowest annual inflation rate since 2018, comfortably below the 4.5% target ceiling. December 2025 alone recorded an exceptionally low 0.33% inflation, the lowest for that month in seven years. According to Décio Lima, president of Sebrae, this achievement reflects the success of economic policies under President Lula and Vice President Geraldo Alckmin. He emphasized that lower inflation builds confidence, boosts consumption, and encourages investment, significantly benefiting small businesses, regarded as the main engine of Brazil's economy. Lima highlighted that "when small businesses thrive, the entire population benefits, leading to broader economic growth."

Inflation drivers in 2025 primarily included housing (6.79%), education (6.22%), personal expenses (5.87%), and health care (5.59%), which accounted for around 64% of the year's inflation. Importantly, small businesses made a substantial contribution to employment, generating over 1.3 million formal jobs from January to November 2025—a figure surpassing the 1.22 million jobs created in 2024. The Commerce sector led job creation with 63,400 hires, followed by Services with 34,400 and Construction with 1,500.

Complementing these positive economic indicators are collaborative efforts like the Projeto Empreender, launched by the Associação Comercial e Industrial de Limeira (ACIL). This initiative fosters cooperation among small businesses within specific sectors by organizing practical, sector-based groups to address shared challenges and opportunities. Active groups currently include Food Service, Beauty, Handicrafts, and the Pet industry, all welcoming new participants eager to strengthen their business networks.

Together, controlled inflation and grassroots collaborative projects form a strong foundation for the continued growth and resilience of Brazil’s small business sector in 2026.