The Ibovespa fell 0.8% to close at 118,857 on Friday, trimming weekly gains to about 0.3%, as investors grappled with persistent domestic inflationary pressures and shifts in global monetary policy. Brazil's annual inflation rate rose to 4.83% in December, surpassing the target ceiling of 4.5%, fueling expectations of at least two additional 1 percentage point rate hikes by the central bank by March and intensifying concerns over a prolonged tightening cycle. Sentiment was further weighed down by fiscal uncertainties and elevated inflation expectations. Externally, a stronger-than-expected U.S. jobs report underscored labor market strength, reinforcing the Federal Reserve's cautious stance on rate cuts. Leading decliners included WEG, Ambev, JBS, Banco Santander, Eletrobras, Itaúsa, Rede D'Or, and B3, with losses between 1.6% and 3.4%.