My favourite is "Central do Brasil" (known in the US as "Central Station") a touching road movie from the late 90s.
If you like "City of God" you may like the more recent "Tropa de Elite" (Elite Squad).
Finally, looking forward to the new documentary film "Senna". Not Brazilian as such but lots of dialogue in portuguese and of course all about the eponymous Brazilian hero. Recommended for F1 and non-F1 fans alike.